Tools of the Federal Reserve Bank


The chief bank of the United States is the Federal Reserve Bank, comprising of a board of governors in the capital of the country and manages twelve reserve banks at district level. Being the chief bank of the country, it’s … Continue reading

Federal Reserve Monetary Policy


The Federal Reserve Act created in 1913, caused formation of present Federal Reserve Monetary Policy of the U.S. This act of the Congress fashioned its central system of banking aimed at safeguarding the US from fiscal failures by formulating and … Continue reading

How to Understand Financial Ratios


Businesses use financial ratios to compare performances of various business activities over a period of time. Since trends keep changing with time, it is recommended comparing ratios of current year to earlier years as calculating ratios for one year doesn’t … Continue reading

Management Accounting Versus Financial Accounting


Professionals believe accounting gives necessary information that businesses require for making financially viable business decisions.  Businesses follow the practice of preparing two kinds of accounting reports: financial and management. Both are equally necessary. Here, we’ll talk about management accounting versus … Continue reading

Relationship Between Financial Statements


Companies essentially need to prepare four financial statements. Fundamentally, all these statements comprise of same series of accounting entries, but each statement focuses on a different financial aspect. It is important to understand the relationship between financial statements to know … Continue reading