Financial Accounting Concepts
Financial accounting is the process of recording, classifying, summarizing and communicating information about a business’s finances.
Operating Profit vs. Gross Profit vs. Net Profit
When reading an income statement you might have seen terms such as gross profit, operating profit and net profit. But do you know the differences among the
Differences Between Events and Transactions
In accounting, the terms events and transactions are often used interchangeably by those unfamiliar with their technical distinctions. Yet, for accountants
-
Creative Accounting and Its Effects on Financial Reporting
Creative accounting is a financial strategy that involves manipulating financial statements to present a more favourable image of a company’s financial hea
-
What is Cash Book? Features and Objectives
The cash book, in its simplest form, is a chronological record of all cash transactions (receipts and payments) made by a business. It serves as a primary
-
What is a Common-Size Financial Statement in Accounting?
A common-size financial statement is a type of financial statement where each line item is presented as a percentage of a base figure. The base figure is t
-
What Does Mean Reconstitution of Partnership?
Reconstitution of partnership refers to a change in the existing structure or terms of a partnership firm while keeping its business operations intact. It
-
What is Receipts and Payments Account?
A receipts and payments account is a type of financial statement, summarizing all cash and bank transactions of an organisation for an accounting period. A
-
What are consolidated financial reports?
Consolidated financial reports are general statements of the parent company and all other subsidiaries in just one financial report. These statements serve
-
Key Differences Between Revenue and Income
Revenue and income are two common terms seen on the Profit and Loss account or income statement of a company. Most students non-accounting persons don̵
-
Difference Between Net Profit and Gross Profit
Profit is one of the most significant measures of a company’s financial well-being, but profits differ. Two critical metrics—gross profit and net pro
