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Financial Accounting Concepts
Operating Profit vs. Gross Profit vs. Net Profit
While reviewing an income statement, you probably noticed the terms gross profit, operating profit, and net profit. But do you understand what differentiates on
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Financial Accounting Concepts
What is the Concept of Measurement in Accounting
Measurement in the accounting process refers to determining the value of the transactions so that they are recorded in the books of accounts. Measurement is a v
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Cost Accounting
Differences Between Traditional Costing and Target Costing
Cost management plays a decisive role in determining profitability, pricing strategy, and long-term competitiveness. Organisations rely on costing methods not o
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Financial Accounting Concepts
What is Working Capital? Why is it Necessary for Businesses?
Working capital refers to the difference between a company’s current assets and current liabilities showing the liquidity strength of a company. Here curr
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Cost Accounting
Roles and Functions of Management Accountants
The role of management accountants has evolved over the years from being solely focused on cost accounting to including a range of functions such as budgeting,
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Financial Accounting Concepts
The role of auditors in a Limited Company
Auditors play a crucial role in public companies, and their responsibilities may vary depending on the company. In some cases, auditors may be responsible for c
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Financial Management
Markowitz Model of Risk-Return Optimization | Assumptions
Markowitz model is an optimal financial investment strategy to maximize the expected return for an investor while maintaining a desired level of risk. The Marko
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Financial Accounting Concepts
What Are Operating and Financing Leases?
Leases are also generally categorized under operating leases and financing (or capital) leases with different accounting and financial effects. An operating lea
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Accounting Regulatory Bodies
The International Accounting Standards Board
The International Accounting Standards Board (IASB) is an independent, standard-setting organisation of the International Financial Reporting Standards Foundati
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Financial Accounting Concepts
What is Dual Aspect Concept in Bookkeeping?
According to the dual aspect concept, there are two aspects of accounting, one represents the assets of the business, and the other is the claim against these a