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Deflation

Definition: Deflation is a general decrease in prices and wages, accompanied by a decline in overall economic activity. It is the opposite of inflation. Causes: Demand-pull deflation: Occurs when aggregate demand decreases, leading to a decline in prices. Cost-push deflation: Occurs when production costs increase, but demand remains unchanged, leading to a decline in prices. […]

1 min read

Long-Term Debt

Definition: Long-term debt is a type of debt that has a maturity of more than one year. It is typically used to finance large, long-term investments or projects, such as building a factory or purchasing equipment. Examples of Long-Term Debt: Mortgages Bonds Loans from banks or other lenders Government debt Corporate debt Characteristics of Long-Term […]

1 min read

Dawn Raid

A dawn raid is a military operation that takes place at the first light of day. It is often used to surprise an enemy and gain an advantage in the early hours of the day. Characteristics of a dawn raid: Surprise: The operation is carried out at a time when the enemy is least expecting […]

1 min read

Advisor Account

Advisor Account An advisor account is a financial account managed by a financial advisor, typically for high-net-worth individuals or institutions. The advisor has the responsibility to make investment decisions on behalf of the account holder, typically based on a specific investment strategy. Key Features of Advisor Accounts: Professional Management: Advisor accounts are managed by experienced […]

2 mins read

Candlestick Chart

Candlestick Chart A candlestick chart is a type of graphical representation used to depict financial instruments’ prices over time. It is characterized by its unique candlestick pattern, which consists of a wick and a body. Candlestick Chart Components: Wick: The wick is a vertical line that connects the opening and closing prices of an asset […]

2 mins read

Subsidy

Definition: Subsidy is a payment made by a government or other organization to a person or corporation to encourage or discourage certain behavior. Types of Subsidies: Direct subsidies: Cash payments or other forms of direct financial assistance from the government to individuals or businesses. Indirect subsidies: Government actions that reduce the cost of production or […]

1 min read

Statutory Audit

Definition: A statutory audit is an audit required by law to be performed on certain entities by independent auditors. It is typically conducted for companies, corporations, and other organizations that are required to meet certain financial reporting standards or regulations. Purpose: To ensure compliance with applicable laws, regulations, and standards. To provide an independent opinion […]

2 mins read

Audit Risk

Audit Risk Audit risk is the risk that the auditor’s opinion may not be accurate, meaning that the auditor may not be able to express an opinion on the financial statements fairly and accurately. This risk is inherent in the audit process and is influenced by a number of factors, including the size and complexity […]

2 mins read

Missent Item

Definition: The term “missent item” refers to an item that has been incorrectly sent or transferred to the wrong recipient or destination. Cause: Human error Technical malfunction Misinterpretation of instructions System errors Examples: A letter meant for Mr. Smith was sent to Mr. Jones instead. A package intended for delivery to New York was mistakenly […]

1 min read

Asset Turnover Ratio

The asset turnover ratio measures how quickly a company is able to generate revenue from its current assets. It is calculated by dividing net sales by current assets. The asset turnover ratio is a measure of efficiency and is important because it can help investors and analysts determine how well a company is utilizing its […]

1 min read

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