Simple average vs weighted average

Data analysis is an important aspect of several functions such as economics, accounting, management and finance. Data analysis employs several tools – statistical and mathematical tools being one of them. Averages is one such mathematical analysis tool. It is essentially a single value that summarizes or represents a set of values. An average can have … Read moreSimple average vs weighted average

Private company vs public company

A company is a type of business entity wherein a separate legal entity is formed and incorporated to run the business of the entity, with the goal of earning profits for its members. All companies have shareholders who are part owners of the company. These shareholders are one of the sources of funds for the … Read morePrivate company vs public company

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 almost all over the world. These cards reduce the need … 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