Debt Service Coverage Ratio
Jennifer edwards Debt Service Coverage ratio is a financial term that means the total amount of cash flow that is available to pay off the annual interest and principle payments accumulated on…
Book Value of Equity per Share
Book value of equity per share is a financial figure that represents the minimum value of a company’s equity with perspective of per share assessment of the company. In order…
Relative Strength Index
Relative Strength index is an indicator of strength and momentum within a business that is used to compare the weight age of recent profits to the weight age of recent…
Subsidiary Ledger
As we all know about the ledger it is an accounting book in the double entry system that is used to record and maintain transactions for a business. There are…
Purchase Ledger
A purchase ledger can be defined as a sub ledger in business accounting that is used to record all the purchases made by the business in that accounting period. The…
Sales Ledger
A sales ledger is an accounting document that displays a complete itemization of all the sales made by the business along with presentation of these sales in the respective date…
Permanent Current Assets
Permanent current assets are the minimum amount of current assets required by the business to smoothly run its current business operations. These are the current assets that are used for…
Percentage Lease
Percentage lease is an accounting concept that is associated with a leased space at which a company or any entity is doing its business. We all know whenever a business…
Overhead Ratio
Overhead ratio is the ratio that is directly related to the operating expense of the business. Operating expenses are the expenses that occur during the day to day routine of…
Fixed Budget
A fixed budget is the financial plan designed and implemented by the management that is not changed or altered throughout the accounting and budgeting period. It remains same and uniform…
Accounting for Manufacturing Businesses
There are a number of accounting issues that are involved in a manufacturing businesses that are absolutely absent from the accounting procedures of the other companies. The accounting procedures involved…
High-Low Method
High-Low Method is used in cost accounting to discern or differentiate the fixed and the variable costs portions from the total cost figure. The high low method is usually used…
Quality of Conformance
Quality of conformance is a concept to calculate the degree of completion of the product. It is the ability of the product or service to meet its specific and ultimate…
Difference between Job Costing and Process Costing
Job Costing is a process of accumulation of production costs that is attributed to the different units of products or groups of units of products. For example if a customer…
Step Fixed Cost
A step fixed cost is a type of cost that is not altered along with the certain threshold of high and low activity within the business and is altered only…
Cost Structure
Cost structure is a structure that refers to the types and proportion of different costs present in a business accounting systems. The main objective to design a cost structure is…
Correct Capitalization Limit
Capitalization limit can be defined as the dollar amount that a business paid for an asset. The asset for which capital is paid by the business is recorded as the…
Accounting for Capital Lease
A capital lease is a kind of lease in which the lessee records the assets to be leased in the same way as it owns the assets that are going…