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Finance Questions and Answers (Q&A)

Capital expenditure refers to expenses made by a business to acquire an asset or to better the capacity of assets. Examples include purchasing machines, buildings, vehicles, and so on. Such expenditure aims to improve the operations of a business and in the long run to increase the profit made and to decrease the total cost of production. On the other hand, revenue expenditure refers to everyday expenses made in a business. Such expenses are incurred regularly.

Example of revenue expenditure includes the cost of electricity, salary, insurance, taxes, repairs, and maintenance. Revenue expenditure helps maintain the earning capacity of a business. In summary, capital revenue increases the earning capacity of a business and decrease the cost of production. It refers to the expenses made to acquire assets. Revenue expenditure helps to maintain the earning capacity of business. It includes recurring expenses made to run a business.

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Visa and MasterCard are two credit-card companies out of many that exist. Visa was created in 1970, and it has risen up as one of the top credit-card companies with prompt electronic payment services. Visa ensures that payments and transactions are made easily between businesses and customers, individuals, private and public organizations, etc. MasterCard, on the other hand, is also a credit-card company. With MasterCard, the processing of payments between you and your bank is guaranteed.

It is important to note that visa and MasterCard don’t issue cards to credit-card users, what they do is to set up the payment system to ease the processing of payments between you and your bank. Visa and MasterCard do not determine the interest rate on your credit-cards. Visa headquarter is situated in California, while MasterCard has its headquarter situated in New York. In short, there is no big difference between visa and MasterCard.

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R. Barnes

I am a nature lover.

DR and BCP are different kinds of plans used by organizations at certain times. DR is the acronym for Disaster Recovery. This type of plan is commonly used after a disaster has occurred. This plan helps organizations access the necessary technology and infrastructures after a disaster.

It is more of a reactive approach to damages such as flooded building or fire outbreak in the organization. The aim of disaster recovery is to restore the organization to operate normally. BCP stands for Business Continuity Plan.

Just as the name implies, this plan is used by organizations to continue business operations. BCP help prevents the possibility of business loss and anticipates disaster and unfavorable incident. BCR is more of a proactive strategy. It helps lessen the probability of damage.

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Jimmy betancourt

Buyers pay time value because they expect the option premium to increase in future due to an anticipated change in the price of the underlying future contract.

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Hopefully, at one point in your life you, will retire from work. It is a time in everyone’s life when they look forward to retirement. It is a time when your working career is over and you can enjoy your days off. There are two main types of retirement plans that you can sign up for. One is called the LIRA. It stands for the Locked-In Retirement Account.

The other one is called the RRSP which stands for the Registered Retirement Savings Plan. These are plans for Canadians. The difference between these two include the ways in which they are taxed. LIRAs can wait to pay taxes on the money until you retire or you take it out. RRSP, however, take out the taxes each year.

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CFO, which stands for Chief Financial Officer, and controller are two roles of leadership in a business establishment. These two roles actually both have accounting backgrounds. But the major difference between them is that the overall accounting section of a company is handled by the controller, while the Chief Financial Officer has the obligation of looking into every operative and financial function of an organization. Thus, it can be said that the Chief Financial Officer is saddled with more roles in an organization than the controller.

The work of a controller is not really different from that of an accountant. Someone that has been handling accounting for quite a long time can work as a controller. The Chief Financial Officer is required to have a sound knowledge about accountancy and financial reporting, which is not really needed for a controller. The CFO should also have good knowledge concerning business operations and financial system interrelation.

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Yield is the monetary gain, and the interest rate is why you made the extra funds. The interest rate is indicated as a percentage. Whether you are paying or receiving dividends, the interest rate is the percentage of money above the initial amount.

The yield is how much money you gained from the initial investment. You can explain yield into terms of a percentage, and you can also do it easily in dollar amounts. With yields, you can compound an interest rate. On the other hand, with interest rates, you cannot compound the interest.

Yield is recognized through simple math. Take your original investment and divide it by the interest rate, which will give you your basic term yield. The interest rate is how many additional profits produced each term. The interest rate is bound in percentages.

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Notes to financial statement and auditors report help to clarify accounting procedures. It explains irregularities and inconsistencies seen in the records. It provides additional information that explains how an organization arrived at a figure, it reports details and additional information that was left out of a main financial document. It also carries important information on the accounting mythologies used for recording and reporting transactions.

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The United States Dollar is the official legal tender of the United States and the insulator territories per the US constitution since 1792. For most functional purposes, the dollar is divided into 1000 mills for accounting purposes. The current paper money consists of federal reserve notes that are denominated in United States dollars. When a salesperson creates an opportunity, they will select the currency used for that particular opportunity.

International agencies can use numerous currencies in opportunities, forecasts, reports, quotes, and other currency fields. The administrator sets the "corporate currency," which reflects the currency of the corporation. The administrator also maintains the list of working currencies and their conversion rates relative to the corporate currency.

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Exponential growth is used when the base of the exponential is known to be larger than 1. This will make the numbers that are already listed there to become more prominent. It can be considered an exponential decay when people know that the exponential is between 1 and 0. This means that there is a massive tendency for the numbers to become smaller over time.

You can tell if something is going through exponential growth when the growth rate is getting higher, and the numbers keep on improving. At times when the growth rate may not be too good, this may signify that they are experiencing exponential decay.

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