Accounting

Fixed capital formation refers to the process of increasing the stock of fixed assets in an economy over a period. Fixed assets are long-term assets such as buildings, machinery, equipment, and infrastructure that are used in the production of goods and services. These investments are crucial for economic growth and development, as they enhance the […]

A fixed charge is a type of security interest over a specific asset or set of assets. This interest gives the lender a legal claim over the asset in case the borrower defaults on the loan. Unlike a floating charge, which covers a pool of changing assets, a fixed charge is tied to a specific,

Fixed costs are business expenses that remain constant regardless of the level of production or sales. These costs do not fluctuate with the number of goods or services produced by the business. They are incurred regularly, providing a predictable financial obligation for businesses. Key Features of Fixed Costs Understanding Fixed Costs Examples of Fixed Costs

Fixed overhead costs refer to expenses that remain constant within a certain range of activity or production, regardless of changes in output or sales volume. These costs are essential for businesses to operate and typically do not vary in the short term based on production levels. Key Features of Fixed Overhead Costs Understanding Fixed Overhead

Fixed production overhead costs are expenses incurred by a business that do not vary with changes in production levels or output. These costs are associated with the production process but remain constant within a certain range of activity, regardless of how much the business produces. They are essential in accounting for determining the total cost

Fixtures and fittings refer to the movable items that are attached or installed in a building or property for use. These items are not part of the building’s structure but are essential for its functionality and operation. In accounting and finance, understanding fixtures and fittings is crucial for property valuation, asset management, and financial reporting

A floating charge is a type of security interest or lien taken over a company’s general assets, such as inventory, receivables, and other movable property. Unlike a fixed charge that is attached to specific assets like land or buildings, a floating charge “floats” over the changing assets of the company. This means that the company

Forensic accounting involves the application of accounting skills and investigative techniques to examine financial records, detect fraud, and present findings in legal proceedings. It combines accounting, auditing, and investigative skills to uncover financial misconduct and provide evidence that can be used in court cases or disputes. Key Aspects of Forensic Accounting How Does Forensic Accounting

Free Asset Ratio (FAR) is a financial metric used primarily by insurance companies to measure their financial health and stability. It indicates the proportion of an insurer’s assets that are not tied up in liabilities and can be considered “free” or available. The free asset ratio is an essential indicator for stakeholders, including regulators, investors,

Free depreciation is a concept in accounting that allows businesses to accelerate the depreciation of an asset for tax purposes. Unlike regular depreciation, where the cost of an asset is spread over its useful life, free depreciation permits a company to write off a larger portion or the entire cost of an asset in the