Financial planning

Definition of Discounting ?

What is Discounting ?

Definition of Discounting Discounting means calculating the present value PV of amount which is expected to be received at some time in future. Time value of money is the concept behind discounting. Brief Explanation Of  Discounting Receiving $ 1M would worth more if received now than after three years because receiving it today you can utilize […]
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What is Cash Flow?

Definition Cash flow is the movement of net amount of cash and equivalents in the business. Positive cash flow indicates the liquid assets of a company are increasing, making feasibility to pay its debt, reinvest in the business, pay expenses and return money to shareholders. Negative cash flow indicates that liquid assets of a company […]
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Definition of Cash Flow Analysis

What is Cash Flow Analysis?

Definition Cash flow analysis is the examination of inflow and outflow of the company for a specific period. The analysis starts with opening balance, generates ending balance after accounting for all cash receipts and paid expenses during the period. Cash flow analysis usually used for the purpose of financial reporting. Explanation of Cash Flow Analysis […]
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Definition of Cash flow Statement

What is Cash Flow Statement?

Definition Cash flow statement is one of the quarterly financial reports of any public limited company, used to disclose the company’s financial matters to public and Security Exchange Commission. This statement provides cumulative financial data regarding all the cash flows of the business. Explanation of Cash Flow Statement The statement indicates about the company’s cash […]
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Definition of Certificate of Deposit

What is Certificate of Deposit?

Definition Certificate of Deposit is the saving certificate issued to the investor or individual to receive interest. Certificate of deposit is consisting of maturity date, fixed interest rate, and can be issued in any denomination. It is generally issued by commercial banks and it is insured by FDIC. Generally, the maturity of the certificate is […]
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Definition of Debt Fund

What is Debt Fund?

Definition Debt fund is a pool of investment such as exchange traded fund or mutual fund, in which primary holdings are based on fixed income investment. The debt fund may be invested in long or short term bonds, money market instrument, treasury bills, security product, government securities, and floating rate debt. Generally, it has fixed […]
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