Debit card vs credit card

Debit card and credit card are the types of plastic cards which are used for making payments online and using EFTPOS terminals on the point of sale. Both types of cards are issued by the same companies like VISA and Master card and are accepted all over the world. These cards reduce the need to … Read moreDebit card vs credit card

Finance lease vs operating lease

Fixed assets are critical for the operations of a business. These can range from high value assets used by manufacturing entities in their production process to lower value assets such as office equipment and furniture required by most entities. Several entities may not have the funding to purchase these outright. To fill this need, there … Read moreFinance lease vs operating lease

Secured loan vs unsecured loan

Businesses opt for debt funding in the form of loans when their internally generated funds are not sufficient or when they do not wish to dilute their equity through issue of shares. Individuals may also opt for loans to meet their personal or professional needs such as buying a car or a house or setting … Read moreSecured loan vs unsecured loan

Monetary assets vs non-monetary assets

Every business owns different types of assets. Assets are essentially resources of the business that help the business generate monetary value or that can be converted into monetary value. To gauge its true financial health, the entity must know the value of its assets. This article looks at meaning of and differences between two different … Read moreMonetary assets vs non-monetary assets

Difference between cumulative and non-cumulative preferred stock

Such stocks which possess more legal status than common stocks are known as preferred stocks. As in the name, preferred stockholders are preferred over common stockholders in terms of dividend payments. Unlike common stockholders, dividend payments of preferred stockholders are fixed and are carried forward in the following years, if company does not pay them … Read moreDifference between cumulative and non-cumulative preferred stock

Difference between authorized share capital and issued & paid up share capital

A company may opt for funding its business through capital contribution. The contributors of capital are called shareholders and receive a share of profit distributed by the company in the form of dividends. This mode of funding results in giving up part ownership of the company but is not accompanied by any fixed interest obligation … Read moreDifference between authorized share capital and issued & paid up share capital

Dividend vs interest

Funding is a core need of most businesses. Funding can primarily take two forms – equity or debt. Equity involves transferring part ownership of the company to the funder in exchange for funds. Debt involves taking of loans or accepting of deposits, without partying with any part of ownership of the entity. In either case, … Read moreDividend vs interest