Invoices in Accounting
Jennifer edwards 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…
Accounts Payable
Account payable is the accounting account that shows the liability of a company or a business. It shows the obligation of a short term debt a business has to pay…
Mean Variance Analysis
Mean Variance Analysis can be defined as a risk assessment tool mostly used by the investors through which they weigh the risk against the expected return from a given investment.…
LGD: Loss Given Default
In order to maintain their capital and perform their operations almost all the companies borrow loan from banks and other companies. Most of the companies return the borrowed loan however…
The Concept of Accountability in Accounting
Accountability can be defined as the responsibility of accountants or the accounts department of a particular business to keep finances of a business clear and transparent. Each individual or department…
Full Cost Method
Full cost method of accounting is an accounting system that is used by the companies dealing in with the trading of crude oil and natural gas. There are two methods…
Flow of Costs
This is an accounting method that explains the flow of costs among various operations within a business or a company. The flow of cost system is associated with the production…
Price to Earnings Ratio
The price to earnings ratio is the ratio that evaluates the shares produced by the company in the market. The price of earnings ratio is the ratio between the prices…