- Financial Accounting Concepts
Net Present Value: Investment Appraisal Tool
What is the Net Present Value Method? Net present value is the total value of the expected future cash flows for a project or investment and deducts a return th
- Financial Accounting Concepts
What are Accounting Standards? | Benefits and Limitations
Accounting Standards (ASs) are the written statements of the code of practice of the regulatory accounting bodies that are to be observed in the preparation and
- Financial Accounting Concepts
The concept of accruals and prepayments
Accruals and prepayments stand on the basis of the double-entry bookkeeping system and modern financial accounting. Accruals/Prepayments The accruals concept is
- Financial Management
What is Financial Performance Measurement?
Financial Performance Measurement Financial performance measurement, also known as financial statement analysis, employs all available tools to demonstrate how
- Cost Accounting
What Are the Limitations of Absorption Costing?
The term “absorption costing” refers to a method of inventory costing that treats all direct and indirect manufacturing costs as inventory costs. Th
- Cost Accounting
What is a Budget Manual? – Meaning and definition
A budget manual outlines the policies, procedures, timelines, and responsibilities related to the budgeting process within an organisation. It serves as a refer
- Cost Accounting
What Are Direct Material Cost Variances?
Direct material cost variance refers to the difference between direct materials’ actual and standard costs. It is calculated using actual output. Direct m
- Financial Accounting Concepts
What is the accounting process?
The accounting process is a series of steps that businesses follow to record, classify, summarize, and report their financial transactions. It is a cyclical pro
- Financial Accounting Concepts
What are accounting estimates in financial accounting?
We have learned how to measure a transaction that has already occurred or taken place and for which either some value /money has been paid, or some valuation pr
- Financial Management
Systematic and Unsystematic Risks
Risk is the probability of an individual or organization incurring a loss. Risk can be classified as market risk, credit risk, operational risk, liquidity risk,