Journal
Sana Ahmed Journal: Learning Objectives: Define and explain journal. What are characteristics of journal? What are its advantages and how a journal is prepared? Definition and Explanation: The word "journal" has been…
Average Costing Method–Materials and Inventory Costing
Sidra Farid Average Costing Method--Materials and Inventory Costing: Learning Objectives: Define and explain average costing method. Give an example of Average costing method. What are advantages and disadvantages of average costing. Definition…
Difference Between Capital and Revenue Expenditures
Abida Rehman Difference Between Capital and Revenue Expenditures: Learning Objectives: What is the difference between capital and revenue expenditures. Following is the difference between capital and revenue expenditures. Capital Expenditures Revenue Expenditures…
Invoice Approval and Data Processing
Shamsa Rafique Invoice Approval and Data Processing: By the time materials reach the receiving department, the company unusually will have received the invoice from the vendor. This invoice and a copy of…
Average Collection Period Ratio: Definition
Average Collection Period Ratio: Definition: The Debtors/Receivable Turnover ratio when calculated in terms of days is known as Average Collection Period or Debtors Collection Period Ratio. The average collection period…
Joint Venture Memorandum Account – An Alternative Method
Joint Venture Memorandum Account - An Alternative Method: Learning Objectives: What is a memorandum joint venture account? Prepare a memorandum joint venture account. The is another method to record the…
Investment Center Definition
Investment Center Definition: A business segment whose manager has control over cost and over revenue and that also has control over the use of investment funds.
Assumptions of Cost-Volume-Profit (CVP) Analysis
Assumptions of Cost-Volume-Profit (CVP) Analysis: Learning Objectives: What are underlying assumptions of cost volume profit (CVP) analysis? A number of assumptions underlie cost-volume-profit (CVP) analysis: These cost volume profit analysis…
Investing Activities definition
Investing Activities definition: Investing activities are transactions that involve acquiring or disposing off non current assets. Relevant terms: Cash flow statement Operating activities Financial activities Cash equivalents
Joint Venture Accounting Exercises and Problems
Learning Objectives: Prepare journal entries and joint venture accounts in the books of parties doing joint venture business. How to solve a joint venture problem. Problem 1 - Journal Entries,…
Appraisal Cost Definition
Appraisal Cost Definition: Costs that are incurred to identify defective products before the products are shipped to customers.
Difference Between Bill of Exchange and Promissory Note
Difference Between Bill of Exchange and Promissory Note: Learning Objectives: What is the difference between bill of exchange and promissory note? A bill of exchange differs from a promissory note…
Inventory Pricing and Interim Financial Reporting – Inventory Valuation
Companies should generally use the same inventory pricing methods or interim financial reporting and make provisions for write downs to make market at interim dates on the same basis as…
Annuity Method of Depreciation
Annuity Method of Depreciation: Learning Objectives: What is annuity method of depreciation? Where is it adopted? According to this method, the purchase of the asset concerned is considered an investment…
Depreciation Tax Shield Definition
Depreciation Tax Shield Definition: A reduction in tax that results from depreciation deductions. The reduction in tax is computed by multiplying the depreciation deduction by the tax rate.
Joint Venture Journal Entries
Joint Venture Journal Entries: Learning Objectives: What is accounting treatment of joint ventures? Prepare journal entries in the books of parties doing joint venture business. There are two methods in…
Allocation Base Definition
Allocation Base Definition Allocation base is a measure of activity such as direct labour-hours or machine-hours that is used to assign costs to cost objects.
Depreciation Accounting – General Questions and Answers
Depreciation Accounting - General Questions and Answers: Learning Objectives: Answers of some of the general questions about depreciation accounting. Theoretical: What is depreciation and how is it brought about? Name…