What are Organic Sales?
Jennifer edwards 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…
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…
Debit and Credit Explained
As we all know that accounting is an art of recording and writing down monetary transactions in organized and disciplined form. Modern day concepts of accounting were introduced by Luca…
Explaining Assets in terms of Accounting
Whenever we analyze or examine the balance sheet of a company the first heading that comes is that of current assets. Current assets may be referred to cash or other…
Inventory Valuation Methods
There are a number of inventory valuation methods that can be used according to the business requirements and managerial decisions. Inventory valuation methods are named as LIFO, FIFO and…
Relevant Costing Technique
It is a type of costing method in accounting where the alternatives are compared and their difference is calculated to consider. Relevant costing technique helps managers to make decisions on…
Cost Volume Profit Analysis
Cost volume profit analysis is a method of analyzing the affect of transition of cost and volume on the net income and operating income of a business. It is a…
Intangible Assets
Intangible assets are those assets that do not exist physically still they are very much important for a business. These are the long term resources that do not have a…
Accounting Equation
Accounting equation can be termed as the foundation stone of the modern day accounting. The financial position of a business is affected by its financial transactions and these financial transactions…
Expense
Expense can be explained as costs or expenditure maintained by a company for a certain accounting period to earn certain amount of revenues. Mostly expenses are incurred through the operating…
Revenue
Revenue of a company is the total sum of money that a company actually holds. It may be received by providing services of by selling particular merchandise of the company.…
Standard Cost
Robert Standard cost means what the cost should be. Standard cost is predetermined cost of a unit of product, or an operation or a department or a process. Standard cost is…
Process Reengineering Definition
Sana Ahmed Process Reengineering Definition: An approach to improvement that involves completely redesigning business processes in order to eliminate unnecessary steps, reduce errors, and reduce costs. Click here to read full article…
Process Costing System Definition
Rubab Ali Process Costing System Definition: Process costing system is a costing system used in those manufacturing situations where a single, homogeneous product (such as cement or flour) is produced for long…