Early Extinguishment of Debt

What is meant by the Early Extinguishment of Debt? – Definition The retirement of debt before maturity is called the early extinguishment of debt. Early extinguishment of debt occurs whenever a firm’s long-term debt is retired before maturity. Management can accomplish this extinguishment by repurchasing the bonds in the market. Other bonds are callable and …

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Expenditure

Definition When a business spends some amount to acquire an asset, that benefited that business for a long period of time, it is called expenditure. Example Amount spent to purchase Building, Furniture, Plant etc.

Equity

Definition The right on the business is called equity or a claim which can be enforced against the assets of the firm is called equity. Types of Equity It is of two types: Internal or owner’s equity: Claim of owner External or outsiders equity: Claim of outsiders.

Executive compensation plan

Executive compensation plan can be defined as one component of the reward system of a management control system. Includes the diverse set of short-run and long-run plans that detail the conditions under which, and the forms in which, compensation is to be made to executives of the organization.