Profitability Index (PI)
Jennifer edwards Profitability index is a ratio that identify and compares the relationship between the total costs involved in the project and the profit returned from that project. The ratio of profitability…
Capital Investment Appraisal Technique
Capital investment appraisal is a branch of budgeting and planning of a firm long term and short term investment for a specific period of time. There are a various components…
Appraisal Capital Explained
Appraisal capital is a process of accounting assets. As the name indicates it is the capital that is appraised when it occurs within a business. Appraisal capital is gathered or…
Outbound Cash Flow
The money that moves out of a company’s or an individual account as a result of a transaction is called as outbound cash flow. The examples of outbound cash flow…
Limitations of Trial Balance
A trail balance is a complete list of all the accounts of revenue and capitals that are listed in the general ledger. This list contains the headings or the name…
Preferred Stock
Preferred stock is also called as the hybrid stock as it is different from the common stock in the sense of having different combination of the features. Preferred stock contains…
Job Costing
Job costing is the measurement or estimation of the cost that is involve in completion of a particular job such as production of goods, manufacturing or cost involved in some…
Invoices in Accounting
Invoice has an important role in accounting as it is the documented proof of a transaction. It is a piece of paper that is issued by the seller to the…
Income Statement Explained
Income statement is one of the most important of financial statements and it’s also known as profit and loss statement. It is also known as statement of operations and statement…
Capital Budgeting: The Net Present Value
The net present value of budgeting used the concept of the time value of the money and evaluates the project for the investment on the bases of cash flows, total…
Capital Budgeting: Internal Rate of Return
As the name indicates the internal rate of return method indicates the rate of return associated with the project. This is the rate of return that an investor can expect…
Capital Budgeting: The Payback Technique
Budgeting is an important aspect of financial planning of a business. With the help of capital budgeting techniques a business decides the allocation, funding and the management of capital for…
What is a Balance Sheet
Balance Sheet of a business is one of the most important of its financial statements. It is also known as the Financial Position Statement of a business. In simple words…
Pricing Methods
Pricing is one of the most important aspects in generating revenues for your firm. Although there is no “The Best” way to price your products still there are a few…
How to do a Break Even Analysis
The break even is the point that tells a firm how much merchandise or services they need to sell so that they can cover their entire costs. A breakeven point…
Revenue Forecasting
Revenue Forecasting is very important in order to see the future growth and expansion of the company related to the revenue and expenses of the firm. With the help of…
The Concept of Double Entry Accounting System
Double entry accounting system is the basic accounting system that records the effects of a transaction from both the seller and the buyer perspective. The double entry accounting system provides…
Analysis of Current Ratio
The measure of the liquidity of a firm over a certain date or for a certain period of time is called current ratio. The maintenance of current ratio is very…