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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
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: Costs that are incurred to identify defective products before the products are shipped to customers.
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…
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: 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: 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: 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 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: Learning Objectives: Answers of some of the general questions about depreciation accounting. Theoretical: What is depreciation and how is it brought about? Name…
Ending Finished Goods Inventory Budget: Learning Objective of the article: Define and explain ending finished goods inventory budget. Prepare a manufacturing overhead budget. After preparing sales budget, production budget, direct…
Joint Products Definition: Two or more items that are produced from a common input are called joint products.
American Institute of Certified Public Accountants (AICPA) Cost or Market Rules--Inventory Valuation The American Institute of Certified Public Accountants (AICPA) moved away from the traditional cost or market, whichever is…
Depreciation of Various Assets: Learning Objectives: How should the depreciation on various assets be calculated?. We discuss below the problem of depreciating some given assets. Freehold Land and Building: It…
After Tax Cost definition The amount of net cash outflow resulting from a tax-deductible cash expense after income tax effects have been considered. After tax cost of debt The amount…
Intranet Definition: An internal organizational communication system that uses internet technology and is accessible only by organizational employees.
Interpersonal Roles Definition: Interpersonal roles are those roles that involve people and other duties that are ceremonial and symbolic in nature. The three interpersonal roles include being a figure head,…
After-Tax Benefit Definition The amount of net cash inflow realized from a taxable cash receipt after income tax effects have been considered. The amount is determined by multiplying the taxable…
Shamsa Rafique 
Sana Ahmed 
Sidra Farid 
Abida Rehman