What are money market instruments and their examples?

What are money market instruments?

Money market instruments are short-term low risk financial instruments which are involved in short-term borrowings and lending with original maturities of one year or shorter periods. These instruments are composed of financial institutions and dealers in money or credit who intend to either borrow or lend. The instruments are traded in the money market. Money market, as contrast to capital market, refers to the borrowing and lending for periods of a year or less Read more

How to earn more profit: 5 ways to succeed

So how can we earn more profit? How can we achieve more income to cover our costs and expenses? Earning more net profit is not impossible. However, you must bear in mind that it cannot be done overnight. It takes a lot of knowing yourself and knowing your surroundings. Placing ourselves from financial security lies in our own hands. But a total victory for our financial freedom lies not only in our hands but also in the favor of our environment. This means to achieve our every financial goal, we need to find every opportunities that can be found within ourselves and within the things that surrounds us. The following are Read more

What is a statement of cash flow? Financial definition

International Accounting Standard (IAS 7), issued by International Accounting Standards Board (IASB) states that the statement of cash flow analyzes changes in cash and cash equivalents during a period. Cash and cash equivalents comprise cash on hand and demand deposits, together with short-term, highly liquid investments that are readily convertible to a known amount of cash, and that are subject to an insignificant risk of changes in value. An investment normally meets the definition of a cash equivalent when it has a maturity of three months or less from the date of acquisition. Equity investments are Read more

What is a statement of comprehensive income (income statement)?

The statement of comprehensive income illustrates the financial performance and results of operations of a particular company or entity for a period of time. It is one of the five basic components of a complete set of financial statements, the other four being the statement of financial position, statement of cash flows, statement of changes in equity, and notes to financial statements. The statement of comprehensive income shows the comprehensive income for the period. Comprehensive income for the period includes profit or loss for that period plus other comprehensive income recognized in that period. Comprehensive income Read more

What is a statement of financial position (balance sheet)?

As amended by International Accounting Standard – IAS 1 (2007), issued by International Accounting Standards Board (IASB) on September 6, 2007, some terminologies in the preparation of financial statements are amended. These amendments include the change of the “balance sheet” term to “statement of financial position; “cash flow statement” to statement of cash flow” and “income statement” to “statement of comprehensive income” (income statement is retained in case of a two-statement approach). Read more

How to reduce income tax payable and expense

For the year that has passed, we will be obliged again to pay our income tax dues. It’s somehow ridiculous to think that you will be punished, in the form of tax obligation, when you do well in business or in employment – that is having a net income or profit. Have you ever wished you never had an income so that you will not be charged for an income tax? But that is life, if you live in a country that relies on the profits of its citizens; you need to give back the favor for standing on its land. Now we need to face the reality. We need to bravely face that obligation. This article aims to guide everyone in legally reduce their income Read more

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