Decoding Average Maturity in Term Loans: A Practical Guide for Better Financial Planning Vinu: Hey Manu, I’ve been hearing a lot about terms like "average maturity" in the context of term loans. Can you explain what average maturity is and how it’s calculated? Manu: Sure, Vinu! Average maturity is a...
Decoding Deferred Tax Liability: Why It Doesn't Count Towards Net Worth Vinu: Hey Manu, I’ve been reading about financial statements, and I came across something called Deferred Tax Liability (DTL). Can we consider Deferred Tax Liability as part of a company’s net worth? Manu: That’s a great questio...
Understanding Bad Debts vs. Provision for Bad Debts: A Simple Breakdown for Business Owners Vinu: Hey Manu, I've been hearing about bad debts and provisions for bad debts in my accounting class, but I'm still a bit confused. Could you explain the difference to me? Manu: Sure, Vinu! Let me explain it...
Understanding Asset Revaluation in Partnership Firms: Key Considerations and Scenarios Vinu: Hey Manu, I have a question regarding revaluation of fixed assets in a partnership firm. Under what circumstances can we carry out the revaluation of assets? Manu: Sure, Vinu! Revaluation of fixed assets can...
Bill Discounting vs. Bill Purchase: Understanding the Key Differences and Risks Vinu: Hey Manu, I’ve been hearing about bill purchase and bill discounting a lot lately, but I’m still not sure what the difference is. Can you explain? Manu: Sure, Vinu! Let's break it down. Bill discounting is when you...