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 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?
When checking the financial statements of a company or solving an accounting problem you might have come across a term fictitious asset. The term “fi
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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
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What is Prepaid Expense? Journal Entry in Books
Prepaid expenses are expenses that a company or business pays for in advance but which have not yet been incurred or used. These expenses can include items
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What is the Matching Principle of Accounting?
The Matching Principle is a fundamental accounting concept that aims to ensure that expenses are recognized in the same period as the related revenues. It
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Difference between trial balance and balance sheet
The balance sheet and trial balance are two of the most important financial statements in accounting. While they both play crucial roles in presenting a co