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Financial Terms

Bad Debt

Bad debt is when a company acknowledges that it is unable to recover the money owed to them by a customer. This occurs when the customer is incapable of repaying the amount borrowed. It is a distressing situation that organizations encounter, as they anticipated receiving the payment. Despite efforts to collect the debt, it becomes clear that the customer is unable to meet their financial obligation. This unfortunate circumstance often necessitates companies to write off the debt as a loss.

Indirect Tax

Indirect taxes are levied on goods and services by the government, and are collected by either the manufacturer or retailer in the supply chain. These taxes, such as the Goo...

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Exposure

Exposure management is a crucial aspect of risk management in finance Exposure, in finance, refers to the calculated percentage of a portfolio that is invested in a particu...

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Articles of Association

The Articles of Association are an essential document that outlines the guidelines and regulations that govern a company's operations. This significant document not only defin...

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Input Tax

It is a key concept in finance, as it affects a company's bottom line and cash flow. Input tax can be reclaimed through the process of tax deductions, which allows businesses...

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