Accounting articles

Loan vs. Lend – What’s the Difference?

Loan vs. Lend – What’s the Difference?You can check whether it’s a direct lender or lead generation company and whether they’re transparent about the fees and other loan details. If you can’t find enough information on the loan you’re applying for on... Read more

How Are Book Value and Market Value Different?

How Are Book Value and Market Value Different?Book value simply implies the value of the company on its books, often referred to as accounting value. It's the accounting value once assets and liabilities have been accounted for by a company's auditor... Read more

Book of prime entry

Book of prime entryBooks of original entryWhich is the book of original entry in accounting?Books of original entry refers to the accounting journals in which business transactions are initially recorded. The information in these books is then summar... Read more

Amortization of Financing, Costs

Amortization of Financing CostsWhen a new bond is issued, it comes with a stated coupon that shows the amount of interest bondholders will earn. For example, a bond with a par value of $1,000 and a coupon rate of 3% will pay annual interest of $30. I... Read more

How bonds work

How bonds workCurrent YieldThe real value of a fixed rate bond is susceptible to loss due to inflation. Because the bonds are long-term securities, rising prices over time can erode the purchasing power of each interest payment a bond makes.What is B... Read more