Limitations of Financial Accounting
Jennifer edwards There are certain limitations in the financial accounting due to which most of the accounting professionals switched to the cost accounting. The first and the foremost limitation of the financial…
Final Accounts
Final Accounts are the accounts that are prepared to find the final estimate of the profit and loss of a company for a certain accounting period. Final accounts are used…
Advantages and Disadvantages of Single Entry System
There are a number of advantages and disadvantages of a single entry system that can be described as under:- Advantages of Single Entry System Single entry system is easy to…
Going Concern Concept
The concept of going concern is an accounting concept that assumes that each business entity or the company is a going concern. By going concern we mean that the company…
Historical Cost
Historical cost can be defined as the value of the resource given up or the liability that incurred at the time when the resource was given up. The liability may…
Assets under Management
Assets under Management Asset under management can be defined as the total market value of the investment of the company that is made by the company in the market and…
Load Fund
Load fund can be defined as the type of the mutual fund that carries a fee to sell and purchase the shares of the company. This load can be expressed…
Book Value
Book Value can be defined as the total worth of the company in case of liquefying of its assets in order to pay back its all liabilities. Another definition of…
Back Flush Costing
Back flush costing is a costing method in accounting in which the cost associated with the production of goods is only recorded when the goods are actually produced, finished or…
Foreign Debt
Foreign debt can also be defined as the external debt and it is categorized as a debt or the part of the total debt that is hold for the foreign…
Floating Interest
Floating Interest Floating interest rate can be defined as an interest rate that is not constant and it changes from time to time. How Floating Interest Rate Works Let’s assume…
Capital Expenditure
What is Capital Expenditure ? Capital expenditure can be defined as the amount of money or the amount of expense that a company uses to purchase, upgrade, improve or extend…
Headline Earnings
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…
Net Investment
Net Investment Net investment can be defined as the measure of the company’s ability of investing in capital assets. The examples of the net investment can be exemplified as property,…
Cost of Goods Sold
Cost of goods sold can be described as a direct expense that associated with the production of the goods with a production plant or a factory. Cost of goods sold…
Future Contract
Future contract is a type of contract that allows or gives an obligation to the buyer to purchase an asset at some future point at a predefined set price. The…
Transaction Risk
Transaction risk is a risk that a company will face regarding the losses that will incur due to the money loss in a transaction occurring in multiple currencies due to…
Equity Income Fund
Equity Income fund can be defined as an income fund that is a type of mutual fund mostly made up of the dividend paying stock. There are a number of…