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A company can raise capital by using the two means - Equity & Debt
Equity means ownership. Everyone who owns an equity share of a company owns a part of the company. He/she can influence the decision making in the company
Debt represents an obligation. The company is obliged to pay the debt provider interest on a regular basis and repay the principal on the agreed upon date. the loan provider has no say whatsoever in the decision making of the company...
a debt is a subcategory of liabilities. so when you have a debt, you automatically have a liability..its like saying, i have a Toyota Camry therefore i have a car. and if you flip it around, it's the same idea...if you have a liability, you don't necessarily have a debt, just like if you have a car, you don't necessarily have a Toyota Camry
the creadit where money is exchanged taken by some one and he promises the lender to re pay later with a certain interest is called a lon
whereas cradit can be of different types also
A credit is a plus so to say and a debit is a minus for example
Say you worked for a shop and at the end of the month you invoiced someone for 100. They pay this bill so in your books your have to out threw a dr and a cr it looks like this
Shop Item
Cr 100 Dr 100
Not sure if I made this so you understand but cheers
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Difference between retrun on equity and return on capital employed?
return on capital employed (ROCE) is net income/(debt&equity) whereas return on equity is income/equity (without debt).
Compare and contrast debt finance and equity finance?
similarities between equity n debt finance
Why is accounting differenciating between assets and equity?
Equity is the proportion of those assets you own, compared to the debt on those assets. An example would be a house. A house is an asset. The equity is the amount of the mortgage that is paid off plus any appreciation the value of the house. Same with a company. Its the difference between what you own and the debt or liabilities. Assets minus liabilities equals equity. You have equity in assets.
What is the difference between a bondholder and a stockholder?
Bondholders own a share of the debt of a company. Stockholders own a share of the equity of a company.
What is the difference between stock market and bond market?
Equity is bought and sold in the stock marketwhile debt is bought and sold in the bond market.
What is the total debt of 1233837 and total assets of 2178990 what is the firms debt to equity ratio?
Debt equity ratio = total debt / total equity debt equity ratio = 1233837 / 2178990 * 100 Debt equity ratio = 56.64%
What is the difference between debt negotiation and consolidation?
Debt Consolidation takes your debt and combines into one single loan, usually tied up in your house equity. Debt Negotiation on the other hand attempts to reduce the amount of debt you have by cutting the total amount you owe.
Explain the difference between share of customer and customer equity.?
Explain the difference between share of customer and customer equity
What is the difference between debt capital and equity capital?
A company can raise capital by using the two means - Equity & Debt Equity means ownership. Everyone who owns an equity share of a company owns a part of the company. He/she can influence the decision making in the company Debt represents an obligation. The company is obliged to pay the debt provider interest on a regular basis and repay the principal on the agreed upon date. the loan provider has no say whatsoever in the decision making of the company...
What is the difference between owner capital and owner equity?
Capital (more specifically working capital) is the combined sum of owner's equity and external financing (loans and other debt financing). Owner's equity is the part that the owners have contributed, by whatever means.
Debt equity ratio tells about what?
debt equity ration
How can you control your debt ratio and debt to equity ratio?
how to control debt equity ratio
