Category Archives for Finance

Bookkeeping Before Computers

Before the advent of the computer, bookkeeping was done by actual bookkeepers. The bookkeeper would record every financial transaction the company made in a journal. The transaction didn’t just need to be entered into the journal but also copied to other ledgers, for example, the company’s general ledger. I can’t imagine the time before handy […]

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Long-Term vs. Short-Term Debt

Whilst you may have a vague idea about the differences between long-term and short-term debt, in accounting terms there are some very clear differences between the two. There are also a number of factors to take into account when considering taking on one form of debt or the other. In accounting terms, short-term debt is […]

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Wealth Management vs ETFs

Have you ever thought about the differences between wealth management and investing in exchange traded funds (ETFs)? That’s the topic of today’s article and we’re going to examine it by means of a pizza… Suppose we have two pizza sellers. One is a plush restaurant with cotton table cloths, candles, well positioned lighting and relaxing […]

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Understanding Company Valuations

All publicly listed companies have valuations, that is, a price for which you can purchase the entire company, including both tangible and intangible assets. These valuations are readily available on the Internet (Yahoo Finance has up to the minute valuations), and yet I’m often surprised how few people in senior positions within publicly listed organizations […]

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