Financial Accounting Concepts
Financial accounting is the process of recording, classifying, summarizing and communicating information about a business’s finances.
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What are Coverage Ratios – Meaning and Calculation
A coverage ratio is a common metric used in financial analysis that determines how much of a company’s assets are covered by its liabilities. This ra
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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
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What is the Double Entry System of Book-Keeping?
The Double Entry System of bookkeeping is an accounting method where every financial transaction is recorded in at least two accounts. In the double entry
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What is Batch Costing? How is it Different From Job Costing?
Batch costing is a form of specific order costing in which costs are attributed to batches of products. A batch might also be called a ‘production run’. A
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Differences between Lease and Hire Purchase
When purchasing assets for business or private purposes, two popular financing methods are leasing and hire purchase. Although both enable you to utilize a
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How to Prepare Profit and Loss Account?
A profit and loss account, also known as the income statement or statement of revenues and expenses, is prepared to ascertain the profit earned or los
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What is the Revenue Recognition Principle?
The revenue recognition principle directs a business to recognise revenue in the period in which it is earned; revenue is not considered earned until a pro
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What Do Mean Sundry Debtors and Sundry Creditors?
Sundry debtors and sundry creditors are words frequently used in the business world. These phrases describe the sums of money that a company owes to its su
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Cost-Volume-Profit Analysis: Advantages and Disadvantages
Cost-Volume-Profit analysis is a financial management tool helping firms understand the relationship between costs, sales volume, and profitability. By ana
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Top 5 Career Options for Accounting Graduates
If you’re an accounting graduate, congratulations on completing a rigorous academic program that has prepared you for a bright future in the business