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 COGS and Cost of sales
The terms COGS and cost of sales are often used interchangeably. However, they represent two different concepts that can have a significant impact on a com
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What is Creative Accounting?
Creative accounting is a term used to describe manipulating financial information to present a better picture of a company’s financial standing. Whil
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Difference Between Secured and Unsecured Loans
Loans are an essential type of fund for most business organisations. Businesses of all natures and sizes take loans to meet the financial needs of the orga
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What is the main difference between fixed and variable costs?
Fixed costs and variable costs are two essential components of the cost structure of any business. It is essential for effective financial planning, budget
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What is Net Realisable Value (NRV)?
Net Realisable Value is the value of a product after subtracting the expected costs of production, transaction costs and taxes related to the sale of the i
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What is Discounted Payback Period Method?
The discounted payback period method is a tool for investment appraisal that is used to determine how long it will take to recoup the project’s initi
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What is a Suspense Account in Financial Accounting?
A suspense account is a general ledger account that consists of certain transactions that cannot be immediately categorised under correct accounts. The cor
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What is an Adjusted Trial Balance?
After adjusting entries are posted to the ledger and adjusting entries are recorded, an adjusted trial balance is compiled. This is the second trial balanc
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What is Petty Cash in Accounting?
Every business, regardless of size, has various expenses that need to be covered daily. These expenses are often small and frequently occur, such as office
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What is Credit Risk?
Credit risk is a term used to describe the potential financial loss a lender may experience when a borrower fails to repay a loan or credit. In other words