What is the MUDRA loan?

MUDRA stands acronym for Micro Units Development & Refinance Agency Ltd. It is an institution of Government of India set up for development and refinancing activities relating to non-corporate micro-units. At present MUDRA is set up as a subsidiary of SIDBI, pending statutory enactment by the Government. Traditionally commercial banks and financial institutions in India…

What is the difference between IFRS and US-GAAP?

The companies across the world, while reporting the financial statement are abide by the specific accounting regulations of their country of business. For example, the companies who have business activities in India have to adapt Indian Accounting Standard (abbreviated as Ind-AS) while reporting the financial statement, similarly, Generally Accepted Accounting Principles (GAAP)’ of US is…

What is a Trial balance?

Trial balance is a list of debits and credits items (assets/liabilities/income/expenses) extracted from closing balance in each account of general ledger. This type of report is generated in a double entry account format before the finalization of balance sheet on a certain date, usually at the end of an accounting period. The trial balance taken…

What is Benefit to cost ratio?

Benefit to cost ratio is used to calculate the NPV in a proportion or ratio format. Here, the present value of future cash flows is calculated on proportion method, though, the method of calculation is similar to NPV method. Benefit to cost= Present value of investment/ present value (PV) of future inflows. If the ratio…

What is Sinking Fund?

Sinking fund is also known as depreciation fund.  Sinking Fund is a fund into which a company sets aside its revenue over a period of time, in order to fund a future capital expense or used to replace the asset at the end of its useful life or for gradual repayment of company’s long-term debt.…