The Acquisition Process
Jennifer edwards The acquisition process is a process of acquiring another company, business or a firm that have a related business and can prove beneficial for the acquirer. The process of acquisition…
Different Types of Dividends
Dividend can be defined as the payment made to the stockholders of a company that have a share in the company’s profit as they have invested equity in the company.…
Incremental Cash Flow Analysis
Sometimes the management may decide to incur certain changes within the business operations that may result in a change in the cash flow of the entire business. This change may…
Installment Method of Revenue Recognition
It is the method of paying for a purchase in the form of installments. These installments may be spanned over days, weeks, months or even years. This method of revenue…
Cost to Cost Method of Revenue Recognition
It is a method of revenue recognition that is used by the accountants to find out the percentage of completion of project, revenue associated with project and the cost associated…
Profit Velocity Analysis
Profit Velocity Analysis is a method of evaluating the products to find out which products take highest time to get pushed from the manufacturing bottle neck. Most of the companies…
Bank Statement Explained
A bank statement is a kind of financial statement that is issued by the banks to the companies or individual customers once in the month to show the financial transactions…
Financial Leverage
Financial leverage is the type of debt that a business entity or a firm utilizes to purchase more assets in order to run business operations. A business entity utilizes financial…
Petty Cash Accounting
A small amount of cash that is kept reserved by a business to fulfill sudden but small every day operational needs is called petty cash. The small cash needs may…
Calculation of Stockholder Equity
Stockholder equity can be defined as the financial share of the stockholder in a business. It can also be defined as the residual funds invested by the stockholder in the…
Current Liabilities Explained
Current liability is that entry of the balance sheet that has to be paid by the company to any third party within a year. It is the responsibility of the…
Average Inventory Calculation
Average inventory is the total inventory that is held by a business for a longer period of time other than the comparison of the inventory from the last month. In…
Comparing LIFO and FIFO methods of Inventory
LIFO and FIFO method of inventory is used to calculate the cost of the present inventory and to find out the actual ending inventory. FIFO and LIFO have their own…
The Gross Profit Method of Inventory Accounting
The gross profit method can be used to calculate the average inventory at the end of a particular accounting period. The basic use of gross profit method of inventory accounting…
Acid Test Ratio
The acid test ratio is a quick indicator of the financial position of a firm. This ratio shows weather a firm has adequate amount of short term assets required to…
Annual Return over an Investment
The annual rate of return is the return that an investment provides a business over a period of one year or annually. The annual return is shown in a time…
Activity Based Costing
Activity based costing is a costing technique that is based on the cost calculations of all the activities that happen while running a business operation. The activity based costing use…
Acquisition Accounting
Acquisition accounting is a formula or a method of showing the financial position of a company a purchasing company on the consolidated statement of the company. The term acquisition accounting…