Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. It is an operation in which a person buys goods in one (cheaper) market and sells in another (dearer) market in order to make a profit out of the price difference. It happens when a securit.....
Under the installment purchase system, there is an outright sale of goods with the buyer having the facility to pay the purchase price in a certain number of agreed installments. In this system, a certain amount is paid as a down payment amount at the time of signing the agreement. The buyer make.....
Apportionment Apportionment means division into parts and it is used in accounts and insurance business. It is the act of sharing something between several people or organizations. The basis used for the apportionment of costs between a number of cost centers when the costs are to be shared be.....
Concept of Installment System An installment system is just like a credit purchase and hires a purchase system of selling and buying goods. It is a credit system of purchase and sale of goods in which payments or receipts are made on an installment basis over a period of time. Like, hire purchase.....
Both hire purchase and installment sales are popular methods of financing goods. There are 3 parties in Hire Purchase trade namely the seller, the financier, and the buyer. There are only 2 parties involved in Installment sale namely the seller and buyer. The main dissimilarities or difference be.....
Annuity An annuity is a payment made to the insured annually. It is a financial product that pays out a fixed stream of payments to an individual, and these financial products are primarily used as an income stream for retirees. It is a contract between you and an insurance company in which you m.....
Amalgamation Amalgamation is a type of merger process in which two or more companies combine together to form a new entity. It is a combination of two or more independent business organizations carrying on the business of a like nature into a joint one and thus forming a new company. It results i.....
Methods of Recording Transactions under the Installment System In the installment system, there is an immediate sale, in which the price, instead of being paid in one lump sum, is spread over a period, interest is charged on unpaid balances. An installment sale is a financing arrangement in which.....
Concept of Admission of New Partner A new partner may be admitted when the firm needs additional capital or managerial help. Admission of a new partner is the inclusion of a new partner as an associate or partner to an existing enterprise is known as an admission of a partner. Partnership by its .....
All Rights Reserved The phrase “All Rights Reserved” is often used by owners to indicate that they reserve all of the rights granted to them under copyright law. This is printed intimation in literary work. Common meaning – it refers to the exclusive legal rights an author, musician, ar.....
Agenda It is a list of items proposed to be discussed at a forthcoming meeting. A well-planned agenda gives a greater sense of control. It is a list, plan, outline, or the like, of things to be done, matters to be acted or voted upon, etc. It is a list of meeting activities in the […]
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After Sight This means that the due date of the bill is to be counted at a specified period from the date of presentation of the bill to the drawee. It is used in a promissory note, after presentment for sight, and, in a bill of exchange, after acceptance, or noting for non-acceptance, or protest.....