Statement of owner’s equity
Statement of owner’s equity help to understand the current wealth owned by shareholders/owners. The movement of balance in the statement indicates whether the business has … Read more
Statement of owner’s equity help to understand the current wealth owned by shareholders/owners. The movement of balance in the statement indicates whether the business has … Read more
Marketing expense is an essential expense for companies to grow and promote their products and / or services. Good marketing has become vital in today’s … Read more
Delivery note meaning The delivery note is a shipping document that enlists details of delivery. It’s generally used to certify/verify receipt of the goods by … Read more
The accounting for short term deposits depends on if you have received/paid the deposit. So, there can be two situations. You have paid the deposits. … Read more
Accounting for inventory involves different items like accounting for purchase, accounting for work in process, accounting for finished goods etc. Let’s go through each of … Read more
Accounting for sales/sales return is simple and straightforward. There are two possible scenarios when you make sales. The sales may be on credit and on … Read more
A long term deposit is when you pay/receive deposit for a time of more than twelve months. The accounting treatment for the long term deposit … Read more
Accrued wages are the wages that an employee has worked for. However, the company has not paid them as of the accounting period end. At … Read more
Following are some of the well-known limitations of the cash flow statement. 1-Liquidity assessment Although cash flow statement shows the cash status of the company, … Read more
Periodicity assumption states the company needs to report financial information in such a manner that the current period can be compared with the previous periods. … Read more
Controllable cost: Controllable cost is a type of cost/expense that can be influenced by decisions of authority/personnel in an organization. In simple terms, the controllable … Read more
Net operating profit after tax meaning NOPAT, ‘Net Operating Profit after Tax’ is a profitability metric that assesses how much cash could be given to … Read more
Deferred revenue / deferred liability: Deferred revenue, also known as “unearned” or deferred income, is any revenue we collect from our customers before earning it. … Read more
Coinbase and Robinhood, both located in the United States, are two convenient and easy to use services which enables the newcomers to purchase and sell … Read more
The Nominal ledger is also referred as a general ledger. All transactions of the company are recorded in the chart of accounts. These chart of … Read more
Contribution and gross margin help to understand the gap between revenue and expenses of the business. These measures are used to assess the profit that … Read more
The selling cost of goods or merchandise from the seller’s factory is called ex-factory price. Here the term “ex” depicts exports, which means that the … Read more
Definition The interim dividend is a dividend payment made by a corporation to the shareholders during accounting year. The payment for the interim dividend is … Read more
Definition NRV – net realizable value in accounting is a widely used inventory valuation method. It aims to calculate the value realized by selling some … Read more
Definition Accounts receivables factoring is designed to finance ventures without increasing leverage in the business. It involves selling of invoices to third parties at discount … Read more