The Concept of Double Entry Accounting System
Jennifer edwards 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…
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…
Book Value Explained
The actual value of an asset that is shown in the balance sheet is called as the book value of that asset. In order to calculate the book value of…
Depreciation: Straight Line Biases
Straight Line Method of Depreciation is a method of calculating depreciation of an asset where the actual cost of the asset is depreciated over the entire useful life of the…
Inventory Conversion Period
The inventory conversion period is defined as the total time period required converting the entire inventory into sales. In other words it can be defined as a relationship between the…
Net Operating Loss
Net Operating Loss can be defined as a specific period or indication where the company comes to have a negative taxable income. This situation arises when the taxable income…
Liquidity Gap
It is measured as the difference between the assets and the liabilities of a company. This gap is calculated when the assets of the firms have different properties as compared…
Accumulated Fund
It is an accounting term that is used for the official capital fund of a non-profit organization such as charitable organizations and NGOs. The accumulated fund of an organization is…
Accrued Interest
Accrued interest is the form of interest that has be calculated and recognized by the company on various financial documents and records but still it is not paid or received…
Accounting Earnings
Accounting earnings is the actual amount of money that is earned by a company in a specific financial year. These earnings are the earnings that is actually reported on an…
API Accountants for Public Interest
As the name indicates Accountants for Public Interest work free of cost just for the benefits of the public. API is an organization with a large number of accountants that…
Deferred Billing
Deferred billing is a method of billing in which buyers are do not charged with the interest even if they pay later than the due date of the purchase. The…
Controlled Disbursement
Controlled disbursement is a cash management technique usually employed in corporate businesses. With the help of this technique the flow of checks between the bank and the business are controlled…
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…
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…