Financial Literacy

Investment capital is what allows a business to start up. And while it becomes less critical over time, it’s still important in helping the company grow. 

Double-declining balance allows companies to write off the largest depreciation expense for an asset in its earliest years.

A depreciation schedule is a breakdown of the depreciation expense calculated and allocated over the span of an asset’s useful life.

Debit in accounting marks one half of every financial transaction, offset by a credit to a different account on the opposite side.

Credit in accounting is a journal entry with the ability to decrease an asset or expense but increase capital, liability or revenue.

The coupon rate is a static variable in the bond market. It’s the interest paid by the bond. Most bonds pay out their coupons on a semi-annual basis.

The bid price is the highest price a buyer is willing to pay for an investment. This converges with the sellers ask price.

Ask price is the lowest price an owner is willing to sell any given asset, such as stock. This is the opposite of the actual bid.