About two or three years ago, Pastor Mensa Otabil, a renowned Ghanaian Christian Statesman, delivered his annual 31^st December night Message, what he normally calls the “Crossover” and called each and every Ghanaian and every human being to be a generational thinker. What he meant was that we should think about the future well-being of our children, our grandchildren, our great-grandchildren. That we should think about the future of our environment, about the future…

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Human beings depend on some form of income to survive life on earth. One type of income is Passive Income that I would share with you today. We looked at Portfolio income sometime ago and we had briefly talked about earned or active income which we said it is income earned from employment, i.e. your monthly salary.

Passive income is one type of income that earns a lot but does not necessarily need your physical strength especially at the revenue earning stage. Initially, a lot of effort… Continue

FINANCIAL LITERACY FOR ALL - CASH MANAGEMENT

Cash ‘consists of cash in hand and deposits repayable upon demand less overdrafts.’ ‘This includes cash held in foreign currency.’



Cash equivalents are ‘short-term highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value.’



Cash flows are ‘inflows and outflows of cash and cash…

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We have learnt that there are different types of income for individuals as well as for corporate entities. One of these different types of income is portfolio income.



Portfolio income is received from shares, mutual funds, unit trusts, balanced funds, treasury bills, etc. Portfolio income is simply gotten form commercial papers.



We have been advised to look for other means of getting income for ourselves and for our corporate entities, thus we should invest for short-term,… Continue

“When I hear somebody sigh, "Life is hard," I am always tempted to ask, "Compared to what?”



“Financial risk is often defined as the unexpected variability or volatility of returns and thus includes both potential worse-than-expected as well as better-than-expected returns”



“A financial return is the profit or loss you have on your investments, including income and change in value.” The return could be interest received, dividend received, rent received, royalty received,… Continue

It is reported that when Albert Einstein was asked what was the most powerful thing in the world? He said it was compound interest.

 “Because compound interest is a really marvellous invention, Albert Einstein called it the 8th Wonder - It can work for you, or against you. When you invest it works for you. When you borrow it works against you!”

“Albert Einstein called compound interest "the greatest mathematical discovery of all time”

It is great and more…

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A business is any activity that generates income for you without your presence. In this write up, the word business would be used to describe all kinds of business like sole proprietorship, partnership, and corporation. Most of these businesses carry certain distinct features like legal entity distinct or different from its owners and can act on its own by utilizing its legitimate rights, power and authority. Sole proprietorship does not have the feature separate legal entity.

A business… Continue

As mortal human beings, one day we will get energetically worn out and cannot perform our duties as when we were young. When we are strong and working hard we should know very well that one

day whether we like it or not we would get retired to go home and rest, because

our productivity would have been reducing and our employers or we would…

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In Accountancy an asset is defined as ‘‘a resource controlled by the entity as a result of past events and from which future economic benefits are expected to

flow to the entity.’’



A liability also defined as a’’ present obligation of the entity arising from

past events, the settlement of which is expected to result in an outflow from

the entity of…

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The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product.

Financial Audit, or more accurately, an audit of financial statements, is the review of the financial statements of a company or any other legal entity (including governments), resulting in the publication of an independent opinion on whether or not those financial statements are relevant, accurate, complete, and fairly presented. Financial audits are typically…

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Each day, we spend or waste some money and whether we like it not we will continue to spend some money.



In accountancy, we have bad and good expenses. The good expenses are the ones; the organization can deduct from the revenue and if something is left as profit, then tax can be applied on it. On the other hand, bad expenses are not allowed to be deducted from the revenue at all. The tax laws would not allow such bad expenses to be deducted from the revenue, the organization has to… Continue

There are various definitions of money and many schools of thought of how money can influence decisions taken by people and how these decisions also impact on society.

Some people believe that they need to work hard to get money and they do not believe they should allow other people to help them get the money they need because they do not trust any other person when it comes to money. Such people prefer to keep their money to themselves alone and they are always afraid to invest. They are… Continue

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Businesses everywhere are run with money. Most businesses raise their capitals in the form of loans. Loans are as old as mankind and will continue to live as far as man lives. I, believe,

everybody, has at least once been encountered with a loan transaction before whether

formal or informal. We take loans from friends,…

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