What is Sub vs Function? In this article, we will discuss the key differences between a sub vs function. Both are sets of commands that are used to perform specific tasks in Microsoft Excel’s Visual Basic Application (VBA). A sub, also known as a subroutine or sub procedure, is a piece of code that is…
What is Excel IF Statement? IF Statement is one of the popular Excel instructions that can be used as a decision-making statement. It is one of the foundational concepts in programming, and it gives the required intelligence to a program so that the program implements decisions based on the criteria set by the user. In…
What is Capital Loss? Capital loss is the reduction in the value of a company’s capital, i.e., investments, capital assets, etc. The loss is realized when capital assets are sold for a price lower than the original price. How to Calculate Capital Loss The formula for capital loss is as follows: Capital Loss = Purchase…
What is Absolute Return? Absolute return can be defined as the return, i.e., absolute gain or loss, an investment generates over a specific period of time. The gain or loss is expressed as a percentage of the total investment. How is Absolute Return Calculated? Absolute return is calculated as follows: Say, for example, an investor…
What is Beyond Budgeting? Beyond Budgeting is the idea of abolishing traditional budgeting processes to eventually improve management control over an organization. By abandoning traditional budgeting processes, a company aims to establish a highly decentralized organizational system and adaptive set of management processes. Rationale Behind Beyond Budgeting The rationale behind the Beyond Budgeting framework is…
What is the Housing Expense Ratio? The housing expense ratio is a ratio that compares housing expenses to earnings before tax (EBT) or pretax income. The ratio is often utilized in credit analysis initiated by lenders during the lending process. In other words, lenders, such as banks, use the ratio during due diligence while qualifying a…
Who is a High Net Worth Individual (HNWI)? A high net worth individual (HNWI) refers to an individual with a net worth of a minimum of $1,000,000 in highly liquid assets, such as cash and investible assets. Individuals with less than $1,000,000 but more than $100,000 are called mass affluent investors. A very high net…
What is Corporate vs Personal Income Tax? In this article, we will discuss corporate vs personal income tax. Corporate tax is an expense of a business (cash outflow) levied by the government that represents a country’s main source of income, whereas personal income tax is a type of tax governmentally imposed on an individual’s income, such…
Who are Short-Term Investors vs Long-Term Investors? In this article, learn more about short-term investors vs long-term investors. Short-term investors are investors who invest in financial instruments intended to be held in an investment portfolio for less than one fiscal year. Conversely, long-term investors represent people investing in long-term financial instruments that they hold for…
