Financial Accounting Concepts
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How to Prepare Profit and Loss Account?
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 p
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What are Coverage Ratios – Meaning and Calculation
A coverage ratio is a measure of the relative financial exposure to a specific contingent liability. The primary purpose is to quantify the ratio of net cu
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What is Financial Statement Analysis?
The term ‘financial statement analysis ‘refers to determining the firm’s financial position by reviewing and analysing the balance sheet items, profi
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The Meaning of Consignment Accounting
Consignment Accounting Consignment refers to selling the goods manufactured by a company through an agent. This sales method is especially popular among bu
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What are various methods of valuation of goodwill?
Goodwill is valued based on the valuer’s assumptions. The methods used to value goodwill vary according to the facts of each case and are frequently
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What is the Double Entry System of Book-Keeping?
Double-entry system is a common bookkeeping system used in accounting. It is one of the oldest known bookkeeping systems and has existed since ancient time
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What Are Accounting Principles, Concepts and Conventions?
Accounting Principles Accounting is sometimes referred to as the business language since it is the means through which a firm interacts with the outside wo
