Category archives: Finance Academy

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Equity vs Debt

Equity vs Debt

The balance of debt and equity that comprises a company's financing is known as its debt-to-equity-ratio.

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Implicit Cost Explained

Implicit Cost Explained

The simplest way to define an implicit cost is ‘the use of an asset you already own, that you didn't buy or lease’.

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Depreciation in Accounting

Depreciation in Accounting

Depreciation is a method in accountancy of sharing out the cost of an asset over its expected or useful life. Another way of understanding this is to think of it as showing how much of the value of an asset has already been used.

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What is Working Capital?

What is Working Capital?

Working capital is what’s left when the sum of a company's current liabilities (including accounts payable to it by customers or clients) is deducted from its total current assets.

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Bridging Finance

Bridging Finance

Bridging Finance is a short-term loan used in the property sector that allows borrowers to immediately access finance.

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