Equivalent Units of Production
Sana Ahmed Equivalent Units of Production: Definition and Explanation of Equivalent Units of Production: After materials, labor and overhead costs have been accumulated in a department, the department's output must be determined…
Bills Payable Book
Shamsa Rafique Bills Payable Book: Learning Objectives: Define and explain bills payable book. Prepare a bills payable book and post into ledger. Definition and Explanation: Bills payable book is used to record…
Cash Flow Statement Definition
Abida Rehman Cash Flow Statement Definition: Cash flow statement is a financial statement that highlights the major activities that directly and indirectly impact cash flows and hence affect the overall cash balance.
Accounting Cycle
Sidra Farid Accounting Cycle Learning Objective: Define and explain accounting cycle. Accounting cycle refers to a complete sequence of accounting procedures which are required to be repeated in same order during each…
Consignment – Definition and Explanation
Rubab Ali Consignment, Consignor and Consignee Learning Objectives: Define and explain the terms consignment, consignor and consignee. The word meaning consignment in accounting can be generally defined as the act of sending…
Equivalent Units of Production Definition
Equivalent Units of Production Definition: The product of the number of partially completed units and their percentage of completion with respect to a particular cost. Equivalent units are the number…
Proprietary Ratio or Equity Ratio
Proprietary Ratio or Equity Ratio: Definition: This is a variant of the debt-to-equity ratio. It is also known as equity ratio or net worth to total assets ratio. This ratio…
Bill of Exchange for Collection
Bill of Exchange for Collection: Learning Objectives: Make journal entries in the books of creditor, debtor, and that of bank when a bill of exchange is sent to the bank…
Accounting Conventions
Accounting Conventions Learning Objectives: What are accounting conventions? Explain important accounting conventions. The term "conventions" includes those customs or traditions which guide the accountants while preparing the accounting statements. The…
Environmental Uncertainty Definition
Environmental Uncertainty Definition: The degree of change and degree of complexity in an organization's environment.
Definition and explanation of cash flow statement
Definition and explanation of cash flow statement. The purpose of the statement of cash flows is to highlight the major activities that directly and indirectly impact cash flows and…
Bill of materials Definition
Bill of materials Definition: Bill of materials is a document that shows the type and quantity of each major item of materials required to make a product.
Absorption Costing Definition
Absorption Costing Definition: Cash equivalents are short-term, highly liquid investments such as treasury bills, commercial paper, and money market funds that are made solely for the purpose of generating a…
Environmental Complexity Definition
Environmental Complexity Definition: The number of components in an organization's environment and the extent of the organization's knowledge about those components.
Definition and Explanation of Bill of Exchange
Definition and Explanation of Bill of Exchange: A bill of exchange has been defined as an unconditional order in writing addressed by one person to another; signed by the person…
Accounting For Bills of Exchange
Accounting For Bills of Exchange: Learning Objectives: Define and explain bills of exchange. What are its advantages? How does a bill differ from a promissory note? How a bill of…
Accounting Concepts
Accounting Concepts Learning objectives: Explain important accounting principles. The term concepts includes those basic assumptions or conditions upon which accounting is based. The following are the important accounting concepts: Business…
Cash Discount Definition
Cash Discount Definition: It is an allowance or deduction allowance by a creditors to a debtor. In other words, cash discount is an allowance made by the supplier or creditor…