Accounting System
Jennifer edwards An accounting system is a type of computerized information system that helps a business in maintaining and managing its accounts and financial transactions. A business has a very complex accounting…
Difference between Bill of Exchange and Cheque
A cheque is a kind of bill of exchange that is drawn on a specific bank or bank and is payable only on demand. There is a considerable difference between…
Information Analysis
Information can be defined as the processed form of data. When data is collected, inspected, cleaned and filtered it is transformed into the information. Information can be used by the…
Disadvantage of Cost Accounting
Cost Accounting is not a logical and scientific branch of accounting as compared to the other branches. Cost accounting lacks a uniform procedure that can be applied to the businesses…
Consigned Stock
A consigned stock is a stock that is legally owned by one company but physically kept by another company. The profit, loss, risks and rewards associated with the consigned stock…
Market Value Added
The market value added is a concept in accounting that deals with the difference between the market value of the business and the capital invested to run the business. If…
Net Worth Ratio
Net worth ratio is the ratio that shows the net worth of the investment of an investor made within the company. This ratio depicts the return that the shareholder is…
Net Profit Ratio
The Net profit ratio is the financial figure that shows the net profit gained by the business after paying the taxes. It can also be defined as the ratio between…
Obsolete Inventory Percentage
The obsolete inventory is a percentage that is important for the firms and companies that have invested significantly in their inventory. This percentage helps the business to identify the percentage…
History of Accounting
The history of accounting relates back to the 14th century when Luca Picioli describes the concepts of debt, credit and bookkeeping for the very first time. No doubt people from…
Business in Liquidation
Business in liquidation is a business that is in the closing process or the owner is winding up his business due to loss or some other reason. While liquidating a…
Just In Time Inventory
Just In Time Inventory or JIT is an inventory management system in which inventory is updated or products are produced or manufactured only when the demand requires that. With the…
Total Quality Management
Total quality management can be defined as a management practices or set of efforts that are applied to the organization in order to improve the organization and increase its efficiency.…
What is Business Process Re engineering?
Business Process Reengineering is a process of making an organization more efficient and effective by redesigning the workflows in order to optimize end to end processes and to remove process…
Inventory Accuracy
In order to maintain systems that meet the customer demand, customer fulfillment and production a company needs to have hundred percent accurate inventory records. In order to have an idea…
Cash Coverage Ratio
Cash coverage ratio can be defined as the amount of cash available in hand in order to pay the interest expense of the business. This ratio shows the amount of…
How to prepare a Cash Flow Statement
The statement of cash flow is a financial statement that represents the flow of cash into and out of the company. It also shows the usage of the cash and…
Debt Service Coverage Ratio
The debt service coverage ratio is a ratio that is related to the revenue generating property. This is the measure of ability of the property to generate so many revenues…