Discounted cash flow (DCF) analysis tells about the present value of an asset/company, based on the money, which it can make in future. This analysis will estimate the intrinsic value of a company.Current and future performances of a company are taken into consideration. Both inflow and outflow cash flows are ... Read More

Merger model gives a detailed analysis of possible combinations of companies. Merger model acts as an intensive tool and is used by banks and merger and acquisitions professionals.It is a feasibility study carried before amalgamations. Companies hire investment and valuation professionals to estimate the value. Based on the value, companies ... Read More

Vertical integration means one company takes control over another company or companies who are in the same product (either in distribution or in production) to gain control over the total chain of product.Companies prefer this type of integration because the supplier is unreliable, high prices may be charged, to earn ... Read More

Takeover is the process of acquiring a control over another business unit by controlling their assets, either directly or indirectly.Generally, takeovers are done by either hostile or friendly approach. They are common in larger business units and help the external growth of a business.ReasonsThe reasons for a takeover in a ... Read More

Acquisition means one company takes control over another company by acquiring more than 50% of shares of the targeted company. Some of the reasons for acquisition are increased market share, diversification, cost reductions, etc.Acquisition structure is the organized framework for acquisition of a company. It considers both cash and non-cash ... Read More

With change in market environments and evolving needs of customers, companies need to change their strategies and their dimensions to sustain and increase their market share.Merger is nothing but, when two companies combine to form a new company due to several reasons. The main motive is to expand their arms, ... Read More

This book records the goods returned to suppliers. It is also called a purchase return day/ outward book. Goods return affects the companies' total purchases or accounts payable.Return outwards reduces business payables for suppliers and business expenses.Journal entryThe journal entry for a return outward book is as follows −Supplier's A/cDebitTo ... Read More

Goods returned from customers are recorded in return inwards book.Return inwards reduces the business total accounts receivables. For business, return inwards decrease the revenue and for the customer, it decreases the receivables for business.Journal entryThe journal entry for a return inward book is as follows −Return inwards A/c     To ... Read More

Books of accounts are defined as "a place where all financial information is related to a person or a business". Books of accounts are maintained under Income tax Act, companies Act 2013 and GST Act.Maintaining books of accounts is compulsory if the turnover/gross receipts/sales from profession or business is above ... Read More

Petty cash books are small cash books which record day to day minor business expenditures. Minor business expenditures include newspaper, fuel, casual labour etc.The person who handles petty cash and their recordings is known as petty cashier. Petty cash books have both debit and credit side and it records all ... Read More