Recurring expense and Non Recurring Expense
What is meant by Recurring Expense? Recurring expense is also known as recurring costs as the name suggests are repeating expenses. They are brought about … Read more
Accounting
Asset vs. Expense
For an effective business management, it’s necessary to understand asset vs. expense. So, If you have started up a business or already have one, you … Read more
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
Marketing expense (All you need to know)
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
What is a delivery note? (All you need to know)
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
Accounting for short term deposit
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
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
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
Accounting for long term deposit
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 in accounting
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
Limitations of Cash Flow Statement
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
What is the Periodicity assumption in accounting?
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
What is controllable and uncontrollable cost
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
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
Is deferred revenue income or liability?
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
Can I transfer crypto from Robinhood to Coinbase?
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
What is a Nominal Ledger?
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 margin vs. gross margin
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
What is the ex-factory price?
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
Interim Dividend (All you need to know)
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