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 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?
In finance, stability is a key determinant for keeping the public trust and economic activities smooth. One of the critical measures that regulators and ba
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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
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What is Meant by Goodwill in Accounting?
Goodwill, within the context of accounting, is a somewhat intricate concept. From a conceptual standpoint, goodwill refers to the intangible value attached
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What is Abnormal Process Loss?
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 non-current assets? Meaning and Examples
In simple terms, non-current assets are resources owned by a company that are not expected to be easily converted into cash within the next year. These ass
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5 Types of Assets That Are Written Off At Some Point of Time
Asset write-offs are an integral part of financial accounting for businesses and organizations. They involve recognising and removing assets from the balan
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What is the Meaning and Scope of Accounting
Accounting is a fundamental aspect of any business, big or small. It involves the recording, analysis, and interpretation of financial information to make