Financial Accounting Concepts
Financial accounting is the process of recording, classifying, summarizing and communicating information about a business’s finances.
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Difference Between Net Profit and Gross Profit
Net profit and gross profit are two important types of profits in accounting. Sometimes both terms are not clear, especially to non-accounting people. Unde
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What is the Going Concern Concept?
The going concern concept is a core principle that assumes a business entity will continue operating for the foreseeable future, typically in the next 12 m
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Difference Between Fixed and Floating Rate of Interest
Interest rates form a vital aspect of the financial landscape. Whether you are considering taking out a loan for a major purchase or investing in a bond, u
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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 a Consolidated Financial Statement?
A consolidated financial statement essentially presents the combined financial results, assets, liabilities, and cash flows of the parent company and its s
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What does mean reporting period in accounting
The reporting period, also known as the accounting period, refers to the specific timeframe for which a company’s financial performance and position
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What is Meant By Impairment of Assets
In simple terms, an impaired asset is one whose market value has fallen below its value listed on the company’s balance sheet. Think of it as a valua
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Indirect Method of Preparing Cash-Flow Statement
A cash flow statement is a crucial financial statement that provides insights into a company’s liquidity and its ability to generate cash. When it co
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What is the Capital Adequacy Ratio?
Imagine walking into a bank, ready to entrust your hard-earned savings. But how can you be sure those funds are safe, shielded from financial storms? Enter
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What Are Joint Products and By-Products?
In cost accounting, joint products and by-products are two types of products that are produced from the same manufacturing process. Joint Products Joint pr