Accounts Receivable (A/R or AR)
A/R, “accounts receivable” is the money a business should receive from its customers for the sales of goods or services on credit. It is the amount of money for which you have issued invoices but have not yet been paid. It is...
Accounts Payable (A/P or AP)
When a company purchases goods on credit which needs to be paid back in a short period of time, it is known as Accounts Payable. It is treated as a liability since you bought goods/services on credit (without paying cash up front)...
How does a loan work?
You must be observing a lot of advertisements about various type of loans from different banks. You would have seen advertisements for home loan, personal loan, car loan etc. Normally for large expenses like a house or a car, any person would...
What is inflation?
If you inflate a car/bike tyre or a balloon, it gets bigger. In finance, inflation is “the rate at which the price of goods and services rise”. High inflation can lead to a “loss in purchasing power” for consumers hence inflation is...