What is hyperinflation, and should we be worried?
The last time inflation levels were this high in the US and Europe, flared trousers were in, roller discos were all the rage, and no one had heard of Steve…
How Does a Stock Exchange Work?
Stock exchanges are platforms that allow investors to buy and sell stocks in a venue that is regulated and transparent. These exchanges enable investors of all stripes to trade stocks,…
Interest Rates: Different Types and What They Mean to Borrowers
What Is an Interest Rate? The interest rate is the amount a lender charges a borrower and is a percentage of the principal loaned. The interest rate on a loan…
Cryptocurrency Regulations Around the World
The growth of cryptocurrency from speculative investment to a new asset class has prompted governments worldwide to explore ways to regulate it. Below, we summarize the current digital currency regulatory…
Capital: Definition, How It’s Used, Structure, and Types in Business
What Is Capital? Capital is a broad term that can describe anything that confers value or benefit to its owners, such as a factory and its machinery, intellectual property like…
Understanding Accounts Payable (AP) With Examples and How to Record AP
What Are Accounts Payable (AP)? Accounts payable (AP), or “payables,” refer to a company’s short-term obligations owed to its creditors or suppliers, which have not yet been paid. Payables appear…
What Is the Internal Revenue Service (IRS)? How Auditing Works
What Is the Internal Revenue Service (IRS)? The Internal Revenue Service (IRS) is a government agency that administers tax laws and collects federal taxes from U.S. individual and corporate taxpayers.…
What Is Depreciation, and How Is It Calculated?
What Is Depreciation? The term depreciation refers to an accounting method used to allocate the cost of a tangible or physical asset over its useful life. Depreciation represents how much…
Equilibrium Price: Definition, Types, Example, and How to Calculate
What Is Equilibrium? Equilibrium is the state in which market supply and demand balance each other, and as a result, prices become stable. Generally, an over-supply of goods or services…
Accrued Interest Definition & Example
What Is Accrued Interest? In accounting, accrued interest refers to the amount of interest that has been incurred on a loan or other financial obligation as of a specific date…