Financial Accounting Concepts
Financial accounting is the process of recording, classifying, summarizing and communicating information about a business’s finances.
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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 differentiat
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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 i
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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
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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
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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 operatin
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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 th
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Benefits of Computerised Accounting Systems
In today’s fast-paced, technology-driven world, businesses need to keep up with the latest advancements to remain competitive. One area where embraci
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What is Abnormal Process Loss? Causes and Impacts
Process loss in manufacturing and production refers to the decrease of expected output due to wastage, defects, or other inefficiencies in the process at t
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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
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What is the Statement of Retained Earnings?
The Statement of Retained Earnings reconciles the Retained Earnings account from the beginning to the end of the fiscal year. Retained earnings represent t