Key Ratio
Jennifer edwards In order to get a clear picture of the current financial position of a company a tool that is used is called key ratio. It is a ratio that gives…
Breakage
Breakage is basically a topic that belongs to the category of Finance however sometimes firms get involved in breakage that have an effect on their revenues so we are going…
Bond Ratio
A bond ratio is one of the most important ratios in accounting and express the leverage associated with the issuer of the bond. In other words bond ratio can…
Audit Cycle in Accounting
It is a process in accounting that is employed by auditors in order to analyze the financial performance and review the financial information of the company. The audit cycle is…
What are Organic Sales?
The term organic sales can make you confused by making you think it is something related to sales of products of the company. However this is not the case as…
Operating Earnings Explained
Operating earnings can be defined as the amount of profit earned by a company after subtracting all the expenses of the company from its total revenue. Expenses that affect operating…
What is Operating Cash Flow?
The cash or the money that is produced by the general operations of a company in a given financial period is called operating cash flow. With the help of operating…
Inventory Accounting
The branch or the subset of accounting that deals with the recording, maintaining and valuation of the assets stored in inventory is called inventory accounting. Inventory accounting maintains and value…
Impaired Capital Explained
Impaired capital is the name given to the capital that actually worth less as compared to its worth stated in a company’s financial accounts. The situation of the occurrences of…
Cookie Jar Accounting Explained
This is an accounting practice that is used to support a business in bad times. Cookie jar accounting is an approach where reserves or funds stored from good years are…
Accrued Dividend
As we know dividend is the amount of profit that is paid to the shareholders of a business or a company. Sometimes dividend is declared but not paid immediately to…
Absorbed Cost Explained
Absorbed cost in a business can be defined as the indirect cost related to the manufacturing of products of the business. In order to understand absorbed cost let take an…
How to record Intangible Assets of a Business
An intangible asset of a business can be defined as an asset that do not exist physically like other assets but have equal importance in profitable performance of a business.…
Financial Accounting Vs Managerial Accounting
Financial accounting and managerial accounting are two different but equally important branches of accounting. Overall accounting includes calculation of financial figures such as tax, profit, expenses, income and many others.…
Business Benchmarking
Business bench marking is a procedure of increasing overall efficiency of the business that may result in increase in your profit. Sometimes you may not be aware that your business…
Depreciation in context with Income Statement and Balance sheet
Depreciation is one of the basic accounting terms that is applied to the degree of wear and tear that happens to a firm’s assets. With the help of depreciation accountants…
General Ledger
General Ledger General ledger is one of the basic entity is the basic accounting cycle that is used to store transactions that are further used in income statement and balance…
Statement of Retained Earnings
Statement of retained earnings is also a financial statement like income statement and cash flow statement. This statement records the changes in the retained earnings of a company for a…