Cost of Capital: Why It Matters for Entrepreneurs in India Vinu: Hey Manu! I've been hearing a lot about the cost of capital lately, and I wanted to understand why it's so important for entrepreneurs like me to have a clear understanding of it. Can you shed some light on this topic, especially in th...
Why Acceptable Financial Ratios Vary Across Industries: Manufacturing vs. Services & Trading Vinu: Hey Manu, I've been wondering why there's a difference in the acceptable level of ratios for different types of businesses. I've noticed that sometimes higher ratios are insisted for manufacturing enti...
RERA Accounts: Ensuring Transparency and Accountability in Real Estate Vinu: Manu, I’ve been hearing a lot about RERA accounts lately. Can you explain what exactly a RERA account is and how it works? Manu: Sure, Vinu. RERA stands for the Real Estate (Regulation and Development) Act, which was introd...
Deferred Revenue Expenditure vs. Prepaid Expense: Key Differences Explained Vinu: Manu, I’ve heard of both "deferred revenue expenditure" and "prepaid expense," but I’m not sure what the difference is. Can you help me understand? Manu: Sure, Vinu! Let me explain it to you. First, let’s talk about de...
Understanding Long-Term Solvency: Why It Matters for Lenders Vinu: Hey Manu, I've been reading about financial statements and came across the term "long-term solvency analysis." Why is this important for lenders? Manu: That's a great question, Vinu. Long-term solvency analysis is crucial for lenders...