Finance Questions

In business, a takeover is the purchase of one company by another.

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. EBITDA came into wide use among private capital firms, wanting to calculate what they should pay for a business.

Internal Rate of Return is that rate of Return at which the net present value is equal to Zero or it is the Rate which equates the present value of the cash inflows to the cash outflows.

NPV = Cash Inflow - Cash outflow

NPV = Zero

A journal is also called as a book of prime entry.Transactions occurred are first entered in this book to show which accounts should be debited and which should be credited.

on the basis of entries made in the journal, accounts are prepared, the book which contains the accounts is called a ledger. Transactions entered in the journal are classified according to their nature and posted in their respective accounts in ledger. it is also called as book of final entry.

Nominal money relates more to it's measure of counting - so nominal figure of what is written on bill, while "real" relates more to it's purchasing power (usually between some periods of time). For instance 100 units in nominal could buy 2 units of good in 1950 and 1 unit of good in 2005, at the same time real value of this 100 nominal units are 100 real units in 1950 and 50 real units in 2005.

Same is with GDP. In nominal it can rise due to inflation while it can stay the same or even decrease in real value.

When a company or corporation earns a profit or surplus, that money can be put to two uses it can either be re-invested in the business called retained earnings or it can be paid to the shareholders as a dividends.

There are two payment types that will help you stick to your budget.

1. Cash
2. Debit Card

The amount in the debit card is the only amount you can spend to stay within budget.

These method work because once you spend your money, you are done. You don’t have anything else to spend.

Credit cards, payday loans, and cash advances are all loans on future income. When you use a credit card, there is always just a little bit more you can spend. These types do not help you budget properly. In fact, these types encourage you to spend beyond your means and be out of budget.

Investment and asset are really close in meaning. Investment is when you put your money in stock, bond or other financial instruments. Whereas Asset is what you own generally reffered to land, proprietorship , factory, etc.