Headline Earnings
Jennifer edwards Headline Earnings Headline earnings of a company can be defined as the earnings that are solely based on operational and capital investment activities of a business. All the other incomes…
Analyzing Account Receivables
Accounts receivables can be defined as the amount of money or cash that is to be received by the company from another party. Accounts receivables are considered as the assets…
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…
Using Break Even Analysis to make managerial decisions
As we know that a breakeven point is a point where there is no loss and no profit. This means a break even analysis provide us with the information that…
External and Internal Balance Sheet
A balance sheet is a financial statement of a business that can be use for internal and external purposes. The preparation of both internal and external balance sheets is for…
How to report Profit, Losses and Cash flows
There are different kinds of financial statements for reporting cash flows in a business such as income statement and statement of cash flows. These cash flows statements are different from…
Accounting Methods
Accounting Methods Accounting methods are the set of rules or specific procedures through which a business keeps its financial records and transform these records into financial reports. Accounting methods are…
Chart of Accounts
For a business or a company the chart of accounts may be described as an index or list of those financial accounts that a business utilizes in its accounting…
Bookkeeping
Maintaining the record of financial transactions and financial day to day business activities is called bookkeeping. The basic purpose of bookkeeping is to maintain the financial records of a business…
Why we need Accounting ?
Robert Every organization aims at making best possible use of its scarce resources, wants to know the results of its efforts and needs a measure of comparison so that deficiencies and…
Difference Between Bill of Exchange and Cheque/Check
Abida Rehman Difference Between Bill of Exchange and Cheque/Check: Learning Objectives: What is the difference between bill of exchange and cheque/check? Check Bill of Exchange It is drawn on a banker It…
Difference Between Bill of Exchange and Promissory Note
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…
Advantages and Disadvantages of Absorption Costing System
Sidra Farid Advantages and Disadvantages of Absorption Costing System Learning Objectives: What are the advantages and disadvantages of using absorption or full costing method? Advantages of Absorption Costing: It recognizes the importance…
Activity Base Definition
Activity Base Definition Activity base is a measure of whatever causes the incurrence of a variable cost. For example, the total cost of X-ray film in a hospital will increase…
Accounting Principles and Accounting Equation
Accounting Principles and Accounting Equation Definition and Explanation: Accounting is the language of business. Affairs of a business unit are made understood to others as well as to those who…
Accounting for Non-Trading Concerns
Accounting for Non-Trading Concerns Definition and Explanation of Non-trading Concerns: Individuals or institutions with activities other than trade are known as non-trading concerns. Examples of non-trading concerns are clubs, hospitals,…
Generally Accepted Accounting Principles (GAAP)
Sana Ahmed Generally Accepted Accounting Principles (GAAP): Generally accepted accounting principles (GAAP) are those principles that have substantial authoritative support. The AICPA's code of professional conduct requires that members prepare financial statements…
Future Value and Present Value Tables
Future Value and Present Value Tables Future Value Tables: Table 1: Future Value of $1 Table 2: Future Value of Ordinary Annuity (Annuity in Arrear - End of Period Payments)…