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 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
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What is Business Entity Concept?
The business entity concept is a fundamental accounting principle that defines a business as a separate economic entity from its owners. This principle is
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The Impact of Inventory Control on Business Profitability
Inventory control plays a critical role in the profitability of a business. It is the process of managing the inventory levels of a company to ensure that
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What is the Cost of Goods Sold? Definition | Formula
Cost of Goods Sold (COGS) is a financial metric representing the cost of the products or services a company sells during a given period. It is an important
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What is a Joint Venture? Meaning and Purpose
A joint venture is a business agreement between two or more parties to pool their resources and expertise to achieve a specific goal or undertake a specifi
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What is an Accounting ERP System?
Accounting ERP (Enterprise Resource Planning) systems are software solutions that assist firms in managing financial data by offering a centralised platfor
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What is a Fictitious Asset in Accounting?
Fictitious assets are not real or tangible assets that a company owns. Rather, they are intangible assets with no intrinsic value but have been created by
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What are sundry expenses?
Sundry expenses refer to all those small, miscellaneous expenses that businesses incur during their operations but don’t fall under any specific cate