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 is a Common-Size Financial Statement in Accounting?
A common-size financial statement is a financial statement where each line item is presented as a percentage of a base figure. The base figure is typically
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Classification of Accounts in Bookkeeping
The journal is the primary record book. All entries are made chronologically; that is when they occur. Transactions in the journal are documented using sol
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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 are Coverage Ratios – Meaning and Calculation
A coverage ratio is a measure of relative financial exposure to a specific contingent liability. The primary purpose is to quantify the ratio of net curren
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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 refers to selling the goods manufactured by a company through an agent. This sales method is especially popular among businesses located abroad
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What are various methods of valuation of goodwill?
Goodwill is an intangible asset that represents the value of a business’s reputation, customer base, brand recognition, and other non-physical assets
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What do you mean by Systematic Risk
Risk The term risk refers to derivation from an expected outcome. The risk of holding an investment is generally associated with the rate of return. There
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What Are Accounting Principles, Concepts and Conventions?
Accounting is a fundamental aspect of running a business. It involves recording, analyzing, and interpreting financial transactions to provide an accurate
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Accounting Policies, Selection and Changes in Accounting Policies
Accounting Policies Accounting policies are the specific policies and procedures used by a company to prepare its financial statements. These include the m