Are you new to this? You might have heard about General Reserves, Share premium account, Capital Reserves etc.. But what are Hidden Reserves? Yes, there is a possibility that Hidden Reserves are maintained. Then How? Reserves of an accounting entity that are not apparent from its published Balance Sheet, because of the way in which Assets & Liabilities are stated. Usually, there is insufficient analysis of total figures for items in the Balance Sheet. This is nothing but the understatement of Net Worth of an Entity. How is this possible?…
Continue Reading.....Year: 2018
You Know
“You Know” is used within the same way as “like” or “humm” is used in an English speaking culture. It’s a tick, a hiccup. It is used by a person for a very quick pause to gather their thoughts. For others, it’s just a display of undisciplined speech. Linguists call interjections like “You Know” and “like” and “humm” and “I mean” and a large number of others ‘filler’ or ‘discourse practices’. It is like an unconscious way of a pause in the middle of a sentence as the person speaking…
Continue Reading.....Conservatism Principle of Accounting
The conservatism principle of accounting is a generally accepted concept of recognizing ‘expenses’ and ‘liabilities’ as soon as possible when they became certain. This principle follows the principle of accounting of Inventory for the closing stock, which is valued at lower of cost or market price. And is followed in Conservatism Principle in accounting. Recognizing the losses and liabilities as and when they become uncertain. This principle also applies to the estimation of losses. Eg. Provision for doubtful debts, allowances for doubtful receivables. It is a very simple principle! Provide for…
Continue Reading.....Pulling my leg
“Pulling my leg”, is an idiom occasionally used to mislead someone playfully or tease someone or to tell someone something that is not true as a way of joking with the person. In simple words, anyone who has been telling you un-believable lies is possibly been ‘pulling your legs’. Some examples are… Oh, please stop crying, I was just pulling your leg! Stop pulling my leg, I do know you lied to me. Is he really angry with me or he is just pulling my leg? For those who are…
Continue Reading.....Negative Pledge Clause
What is a negative pledge clause? A negative pledge clause protects bondholders’ investments. It prevents a bond issuer from taking on future debt, which may result in paying off the current debt. This clause is one of the ways for bondholders to protect/guard their investment. By including a negative pledge clause in a bond agreement, the bondholders prevent the company to raise any further debt in the future which would risk their rights of priority claims on the Company’s assets. The bondholders of the current bond issue prevent the company from issuing…
Continue Reading.....Comma Courtesy in Business emails
The Comma has a power for greater than its humble looks might suggest. We are understanding Comma Courtesy in Business emails. A misplaced one can change the meaning and tone of the message, which can cause confusion and undesired consequences. So let’s go over the two most important uses for commas in business emails – 1) Comma and Salutations – A business email starts with salutations. And salutation ends with comma, right? Wrong. In business emails, the most important formal way of ending salutations is with a colon (:). So…
Continue Reading.....What is useful life in Accounting?
The term Useful life in Accounting, is used for Fixed Asset Accounting. Fixed Assets always are having certain life, during which asset is expected to provide benefits to an entity. The expenditure on purchase of Fixed Asset is always very high & is non-recurring in nature. Fixed Assets are capitalized & get depreciated over the period of its life. In other words, it is an estimation of number of years, that the Asset is remain in service for the purpose of cost effective revenue generation. The idea behind this is,…
Continue Reading.....Flaming emails / Angry emails
Flaming Email is a kind of expression in emails that directs angry, critical or disappointing email. ‘Flaming’ is what people do when they express strong opinion, without holding back emotions. i.e. writing email with an anger & express the same emotions in email. Writer to avoid such kind of mails by following below mentioned some of the points. Flaming is an online act of posting insults, often laced with profanity or other offensive language through internet. Polite respond to all emails : In most of the instances, this is all that…
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