Introduction  Accounting is a function in which business transactions are recorded and presented in the form of financial statements. The three main financial statements are the balance sheet, the profit and loss statement, and the cash flow statement.  Accounting transactions must be recorded in accordance with a set of rules. In the United States, the

Introduction  When an individual or group of individuals decides to start a business, they must decide on what type of organization they will do business as. This decision should not be taken lightly and should be made with the assistance of a business attorney and CPA.   In the United States, there are four basic types

Introduction In the previous post, we covered the time value of money (TVM) concept. In this post, we will look at how the TVM concept can be used to make financial decisions. Discount Rate When we discount a future sum or cash flow stream, we must choose a rate which compensates us for the riskiness

Introduction All investment decisions involve trading a current sum of money for an expected future sum. The time value of money (TVM) is a core concept in finance that recognizes that money in the future is worth less than money in the present. The key concept underlying TVM is the concept of opportunity cost. This