What is an Expenditure? Definition: In business, expenditure refers to funds that businesses or individuals use to acquire new assets, to reduce or do away with liabilities, or to improve the existing assets. So, if a business pays cash or uses credit to replenish its stock then the business will record the transaction as expenditure.
What is the Estate Tax? Definition: An estate tax is the financial levy that is applied during the transfer of an estate from the previous owner upon death. Usually, estate owners leave a will behind that defines the process of transfer, with details like who will receive a piece of the estate and what amount.
What Is An Externality? Definition: Externality is a term used in finance to denote the cost or benefit incurred by an unrelated third party. Externalities occur from the production of goods and services that end up impacting third parties that are not directly related. Similarly, an externality can be negative or positive. The fact that
Finding the best robo advisor to help you manage your investments isn’t that easy. Tracking financial investments can be very tasking for individuals, regardless of long-term expertise and systematic study of the market or other areas of financial interest. Sometimes, you would have to keep up with real time market analysis, manage your capital base,
What is Expenditure Approach? Definition: The expenditure approach is a method used to measure the Gross Domestic Product of a country. The distinct GDP measuring metric focuses on the amount of money spent within a country’s border. Unlike other methods, the method focuses on consumer consumption as well as government spending and net exports. The
What are Equivalent Units of Production? Definition: Equivalent units of production are the sum of the units completed during a given accounting period together with the unfinished units that have been expressed as finished units. Simply stated, equivalent units of production are the units in production represented as a factor of the completeness of the
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What Is Equilibrium? Definition: Equilibrium is a term whose application is broad. However, the standard definition of equilibrium is a state of balance or calmness where there is no conflict between opposing forces. In this article, we will focus on equilibrium as used in chemical reactions and in economics. Equilibrium in Chemical Reactions In a
What is an Endowment Fund? Definition: An endowment fund is the money donated by philanthropists to non-profit organizations to facilitate the fulfillment of the objectives of the institutions. Typically, such donations target institutions like universities, hospitals, churches and museums. Depending on the size of the fund, it is intended to meet part or the entire