Thursday, August 9, 2018

Who is investor?


Being an investor is not that easy at all, because it is all about education. Investors can spend years and years researching investing, and there will still be things to learn.

What is investing?
Investing is simply the act of committing money or capital to a business, project, real estate, etc. with the expectation of obtaining an additional income or profit.

What is an investor?
An investor is a person that allocates capital with the expectation of a future financial return.

There are 6 types of investments:
  •  Equity - The stock (also capital stock) of a corporation is constituted of the equity stock of its owners. A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares.
  • Debt securities - Debt security refers to a debt instrument, such as a government bond, corporate bond, certificate of deposit (CD), municipal bond or preferred stock, that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate, and maturity and renewal date. It also includes collateralized securities, such as collateralized debt obligations (CDOs), collateralized mortgage obligations (CMOs), mortgage-backed securities issued by the Government National Mortgage Association (GNMAs) and zero-coupon securities.
  • Real estate -  "property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; an immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general.
  • Currency - in the most specific use of the word, refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins.
  • Commodity - In economics, a commodity is an economic good or service that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.
  • Token - In the study of numismatics, token coins or trade tokens are coin-like objects used instead of coins. The field of tokens is part of exonumia and token coins are token money.

Tuesday, August 7, 2018

What is accounting?


Have you heard of the term "accounting"? If no, what is the first thing that comes to your head hearing it?
In this article, we will go through the accounting topic!

What is Accounting?
Accounting or accountancy is the measurement, processing, and communication of financial information about economic entities(In accounting, an economic entity is one of the assumptions made in generally accepted accounting principles).

There are five types of accounting which are:
Financial accounting - is concerned with the summary, analysis and reporting of financial transactions pertaining to a business.
Management accounting - also known as managerial accounting, managers use the provisions of accounting information in order to better inform themselves before they decide matters within their organizations, which aids their management and performance of control functions.
External auditing - systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements, as well as non-financial disclosures, present a true and fair view of the concern.
Tax accounting -  accounting for tax purposes in the United States.
Cost accounting - the process of recording, classifying, analyzing, summarizing, and allocating costs associated with a process, and then developing various courses of action to control the costs.

Accounting information systems(AIS) are designed to support accounting functions and related activities.
Standard-setters, accounting firms and professional bodies are facilitating Accounting.
Any business needs accounting, the company can't live without one. The businesses or accountants need to know all the laws.