# Fundamentals of Accounting > Finance Literacy Hub --- ## Pages - [About Us](https://fundamentalsofaccounting.org/about-us/): About Us – Fundamentals of Accounting Fundamentals of Accounting is a blog site dedicated to providing accounting education and resources... - [Privacy Policy](https://fundamentalsofaccounting.org/privacy-policy/): At Fundamentals of Accounting, accessible from https://fundamentalsofaccounting. org/, one of our main priorities is the privacy of our visitors. This... - [Contact Us](https://fundamentalsofaccounting.org/say-hello/): Contact us if you have any query or question about our website or topic problem. We will try our best to resolve your problem. --- ## Posts - [Depreciation, Amortisation, and Depletion: What’s the Difference?](https://fundamentalsofaccounting.org/depreciation-amortisation-and-depletion/): Every business owns assets — machines, vehicles, buildings, patents, and natural resources — that help it generate revenue. But these... - [Common Mistakes Students Make While Calculating Depreciation](https://fundamentalsofaccounting.org/common-mistakes-students-make-while-calculating-depreciation/): Depreciation is one of the foundational concepts in accounting that helps allocate the cost of a tangible asset over its... - [Written Down Value Method of Depreciation](https://fundamentalsofaccounting.org/written-down-value-method-of-depreciation/): Depreciation represents the systematic reduction in the value of an asset over its useful life due to wear and tear,... - [What Is a Fractional CFO and Why Every Growing Business Needs One](https://fundamentalsofaccounting.org/what-is-a-fractional-cfo/): In business world, financial expertise is no longer a luxury — it is a necessity. Yet, hiring a full-time Chief... - [What is an Initial Public Offer (IPO)?](https://fundamentalsofaccounting.org/what-is-an-initial-public-offer-ipo/): An Initial Public Offer is the process by which a private company sells its shares to the public for the... - [5 Key Aspects of Technical Analysis of Shares](https://fundamentalsofaccounting.org/5-key-aspects-of-technical-analysis-of-shares/): Technical analysis is one of the most widely used approaches for evaluating and predicting stock price movements. Unlike fundamental analysis,... - [Only 2 GST Rates Now - Relief for Consumers and Businesses](https://fundamentalsofaccounting.org/only-2-gst-rates-now-relief-for-consumers-and-businesses/): In a major move, the Goods and Services Tax (GST) Council has approved a plan to reduce the number of... - [What is the Matching Concept in Accounting](https://fundamentalsofaccounting.org/what-is-the-matching-concept-in-accounting/): The Matching Concept is the concept that all expenses should be accounted for in the same period as the revenues they relate to. - [Why Forensic Audit Was Initiated at IndusInd Bank?](https://fundamentalsofaccounting.org/why-forensic-audit-was-initiated/): Concerns raised over specific derivative transactions have placed IndusInd Bank, the leading private sector lender in India, under regulatory scrutiny. - [Operating Profit vs. Gross Profit vs. Net Profit](https://fundamentalsofaccounting.org/operating-profit-vs-gross-profit/): While reviewing an income statement, you probably noticed the terms gross profit, operating profit, and net profit. But do you... - [Differences Between Events and Transactions](https://fundamentalsofaccounting.org/events-and-transactions/): In accounting, the terms events and transactions are often used interchangeably by those unfamiliar with their technical distinctions. - [Creative Accounting and Its Effects on Financial Reporting](https://fundamentalsofaccounting.org/creative-accounting/): Creative accounting is a financial strategy that involves manipulating financial statements to present a more favourable image of a company’s financial health. - [What is Cash Book? Features and Objectives](https://fundamentalsofaccounting.org/what-is-cash-book-features-and-objectives/): The cash book, in its simplest form, is a chronological record of all cash transactions (receipts and payments) made by... - [What is a Common-Size Financial Statement in Accounting?](https://fundamentalsofaccounting.org/common-size-statement-in-accounting/): A common-size financial statement is a type of financial statement where each line item is presented as a percentage of a base figure. - [What is Goods and Services Tax (GST)?](https://fundamentalsofaccounting.org/what-is-goods-and-services-tax-gst/): For accounting students, professionals and businesses it is critical to understand the implications of Goods and Services Tax on accounting. - [Difference Between Interim and Final Dividend](https://fundamentalsofaccounting.org/difference-between-interim-and-final-dividend/): It is important for investors to understand the differences between interim and final dividends because it informs their financial decisions. - [What Are Stock Control Cards - Pros and Cons Explained](https://fundamentalsofaccounting.org/what-are-stock-control-cards/): Stock control cards contains a complete record of the movement of stock to monitor stock levels, avoid shortages, and maximize stock management. - [5 Legit Expenses That Reduce Tax in Books of Accounts](https://fundamentalsofaccounting.org/5-legit-expenses-that-reduce-tax/): This article explores 5 legit expenses that can help reduce tax liabilities in a legitimate and compliant manner. - [What is Weighted Average Cost of Capital?](https://fundamentalsofaccounting.org/weighted-average-cost-of-capital/): The Weighted Average Cost of Capital (WACC) is a crucial financial metric that represents a company's overall cost of financing its assets. - [Top 5 Theories of Dividend Decision](https://fundamentalsofaccounting.org/top-5-theories-of-dividend-decision/): In this post, we are going to learn about the top 5 theories of dividend decision and their underlying assumptions. - [What Does Mean Reconstitution of Partnership?](https://fundamentalsofaccounting.org/reconstitution-of-partnership/): Reconstitution of partnership refers to a change in the existing structure or terms of a partnership firm while keeping its business operations intact. - [What is Receipts and Payments Account?](https://fundamentalsofaccounting.org/what-is-receipts-and-payments-account/): A receipts and payments account is a type of financial statement, summarizing all cash and bank transactions of an organisation for an accounting period. - [Key Differences Between Revenue and Income](https://fundamentalsofaccounting.org/key-differences-between-revenue-and-income/): Therefore, in this article, we are going to discuss some of the key differences between revenue and income so you can know their roles in accounting. - [What are consolidated financial reports?](https://fundamentalsofaccounting.org/what-are-consolidated-financial-reports/): Consolidated financial reports are general statements of the parent company and all other subsidiaries in just one financial report. These... - [Benefits of Issuing Debentures Rather than Shares](https://fundamentalsofaccounting.org/benefits-of-issuing-debentures-rather-than-shares/): Companies raising capital to raise funds in order to expand are at liberty to opt for shares or debentures. While... - [How AI is Making the Work of Accountants Easier](https://fundamentalsofaccounting.org/ai-the-work-of-accountants-easier/): Artificial Intelligence is changing the face of industries in all directions, and accounting is definitely not excluded. Artificial intelligence can... - [What Are ESG Reporting Frameworks?](https://fundamentalsofaccounting.org/what-are-esg-reporting-frameworks/): Companies need Environmental, Social, and Governance or ESG reporting frameworks to express their sustainability and ethical performance. The significance of... - [What is Economic Batch Quantity? With Example](https://fundamentalsofaccounting.org/economic-batch-quantity-with-example/): Economic batch quantity (EBQ) is a crucial concept that determines the most cost-effective quantity of units to produce in a... - [What is the Going Concern Concept?](https://fundamentalsofaccounting.org/what-is-the-going-concern-concept/): The going concern concept is a principle that assumes a business entity will continue operating for the foreseeable future, typically in the next 12 months. - [Difference Between Net Profit and Gross Profit](https://fundamentalsofaccounting.org/net-profit-and-gross-profit/): We will understand the key differences between net profit and gross profit and how both affect a firm's financial performance in this blog. - [Liquidation of Companies | Meaning and Procedure](https://fundamentalsofaccounting.org/liquidation-of-companies-meaning-and-procedure/): The liquidation of companies refers to the process of winding down operations and selling its assets to pay off its... - [What are calls-in-arrear and calls-in-advance?](https://fundamentalsofaccounting.org/calls-in-arrear-and-calls-in-advance/): Calls-in-arrear and calls-in-advance are related to the share capital of a company and how shareholders contribute to it. Here’s a... - [Difference Between Fixed and Floating Rate of Interest](https://fundamentalsofaccounting.org/fixed-and-floating-rate-of-interest/): Let's explore the difference between fixed and floating rates of interest, their advantages and disadvantages, and factors to consider when making a decision. - [What is the Difference Between Trading and Investing](https://fundamentalsofaccounting.org/trading-and-investing/): In growing wealth in the financial market, two popular strategies are trading and investing. Though both require buying and selling... - [Benefits of Computerised Accounting Systems](https://fundamentalsofaccounting.org/computerised-accounting-systems/): In today’s fast-paced, technology-driven world, businesses need to keep up with the latest advancements to remain competitive. One area where... - [What is Meant By Impairment of Assets](https://fundamentalsofaccounting.org/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... - [What does mean reporting period in accounting](https://fundamentalsofaccounting.org/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... - [What is a Consolidated Financial Statement?](https://fundamentalsofaccounting.org/consolidated-financial-statement/): A consolidated financial statement is a report of financial position and performance of a parent company and its subsidiaries as a single entity. - [What is Securities Transaction Tax (STT)?](https://fundamentalsofaccounting.org/what-is-securities-transaction-tax-stt/): STT can be defined as a tax imposed on the purchase and sale of securities in the financial markets. Its... - [Indirect Method of Preparing Cash-Flow Statement](https://fundamentalsofaccounting.org/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... - [What is the Capital Adequacy Ratio?](https://fundamentalsofaccounting.org/what-is-the-capital-adequacy-ratio/): This blog will explore what the Capital Adequacy Ratio entails, its significance in the banking sector, and the global standards guiding its implementation. - [Fintech: disruptive technologies transforming financial services](https://fundamentalsofaccounting.org/fintech-disruptive-technologies/): Fintech, an abbreviation for financial technology, is a term that encompasses the use of technology to deliver innovative and transformative... - [What is Asset Management?](https://fundamentalsofaccounting.org/what-is-asset-management/): Asset management is a systematic process of developing, maintaining and selling assets to maximize their value and achieve organizational goals. - [5 Important Types of Technical Analysis](https://fundamentalsofaccounting.org/5-important-types-of-technical-analysis/): Technical analysis serves as a vital tool in financial markets, providing investors with valuable insights to guide their decision-making process.... - [What is Production Volume Variance?](https://fundamentalsofaccounting.org/production-volume-variance/): Production volume variance is a measure of the difference between the actual cost of producing a certain number of units... - [What Are Joint Products and By-Products?](https://fundamentalsofaccounting.org/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.... - [Benefits of Issuing Shares as Source of Capital](https://fundamentalsofaccounting.org/benefits-of-issuing-shares/): In the world of business, having access to sufficient capital is crucial for growth and expansion. However, traditional methods of... - [What are non-current assets? Meaning and Examples](https://fundamentalsofaccounting.org/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... - [What is Meant by Goodwill in Accounting?](https://fundamentalsofaccounting.org/goodwill-in-accounting/): In this blog post, we will explore the concept of goodwill in accounting, its importance, and how it is calculated under different circumstances. - [What is Abnormal Process Loss? Causes and Impacts](https://fundamentalsofaccounting.org/abnormal-process-loss/): Process loss in manufacturing and production refers to the decrease of expected output due to wastage, defects, or other inefficiencies... - [5 Types of Assets That Are Written Off At Some Point of Time](https://fundamentalsofaccounting.org/5-type-of-assets-that-are-written-off/): Asset write-offs are an integral part of financial accounting for businesses and organizations. They involve recognising and removing assets from... - [What is a Forward Exchange Contract?](https://fundamentalsofaccounting.org/what-is-a-forward-exchange-contract/): A Forward Exchange Contract is a financial agreement where two parties agree to exchange currencies at a predetermined rate on a future date. - [What is the Swap Ratio?](https://fundamentalsofaccounting.org/what-is-the-swap-ratio/): A swap ratio is a term commonly used in mergers and acquisitions to determine the exchange ratio of shares between... - [What is the difference between a merger and a demerger?](https://fundamentalsofaccounting.org/what-is-the-difference-between-a-merger-and-a-demerger/): Businesses rarely remain static; they evolve in response to market pressure, regulatory demands, and strategic ambition. When organisations restructure, two... - [How to Calculate Profit or Loss on Incomplete Contracts?](https://fundamentalsofaccounting.org/profit-loss-on-incomplete-contracts/): The profit or loss on incomplete contracts in cost accounting can be calculated using the percentage of completion method. This... - [The International Accounting Standards Board](https://fundamentalsofaccounting.org/the-international-accounting-standards-board/): The International Accounting Standards Board (IASB) is an independent, standard-setting organisation of the International Financial Reporting Standards Foundation (IFRS Foundation).... - [What is the Meaning and Scope of Accounting](https://fundamentalsofaccounting.org/what-is-the-meaning-and-scope-of-accounting/): In this blog post, we will explore the meaning and scope of accounting, understanding its significance in finance and business operations. - [What is the Double Entry System of Book-Keeping?](https://fundamentalsofaccounting.org/double-entry-system-of-book-keeping/): The Double Entry System of bookkeeping is an accounting method where every financial transaction is recorded in at least two accounts. - [What is Batch Costing? How is it Different From Job Costing?](https://fundamentalsofaccounting.org/batch-costing-vs-job-costing/): Batch costing is a form of specific order costing in which costs are attributed to batches of products. A batch... - [5 ways to improve liquidity ratios](https://fundamentalsofaccounting.org/5-ways-to-improve-liquidity-ratios/): This blog highlights 5 ways to improve liquidity ratios from optimizing working capital management to reducing overhead expenses. - [What is a Cost Plus Contract?](https://fundamentalsofaccounting.org/what-is-a-cost-plus-contract/): Cost plus contract, which is also known as a cost-reimbursement contract, pays a contractor for all permitted expenses up to... - [Write a note on accounting for payroll](https://fundamentalsofaccounting.org/accounting-for-payroll/): Accounting for payroll is a fundamental aspect of managing human resources and ensuring accurate financial records. This procedure entails keeping... - [Bank Overdraft as a Source of Finance](https://fundamentalsofaccounting.org/bank-overdraft-as-a-source-of-finance/): Bank overdraft is a common source of finance used by businesses, individuals and even governments to meet their short-term cash... - [What is a Production Budget and Its Components?](https://fundamentalsofaccounting.org/production-budget/): A production budget is a financial plan that outlines the estimated costs associated with creating and delivering a product or... - [What is Economic Order Quantity and Its Assumptions?](https://fundamentalsofaccounting.org/what-is-economic-order-quantity-and-its-assumptions/): Economic Order Quantity (EOQ) is a formula used in inventory management to determine the optimal quantity of goods that should... - [What is meant by annual holding cost in costing?](https://fundamentalsofaccounting.org/what-is-meant-by-annual-holding-cost-in-costing/): Annual Holding Cost or carrying cost refers to the total expense a business incurs to store and manage inventory over... - [A Short Note on the LIFO Method of Inventory Valuation](https://fundamentalsofaccounting.org/a-short-note-on-the-lifo-method-of-inventory-valuation/): The LIFO method, or last-in, first-out, is one of the most popular and widely used inventory valuation methods in cost... - [Difference between Spoilage and Defectives in Cost Accounting](https://fundamentalsofaccounting.org/spoilage-and-defectives-in-cost-accounting/): In cost accounting, spoilage and defectives refer to different types of quality issues that arise during the production process. While... - [Differences between Lease and Hire Purchase](https://fundamentalsofaccounting.org/differences-between-lease-and-hire-purchase/): In this blog, we will discuss the most important differences between lease and hire purchase, their working and suitability based on needs. - [What Are the Differences between Accounting and Auditing](https://fundamentalsofaccounting.org/differences-between-accounting-and-auditing/): Accounting involves tracking, reporting, and analyzing financial transactions. It covers everything from preparing individual tax returns to preparing financial statements... - [Differences Between Equity and Preference Shares](https://fundamentalsofaccounting.org/differences-between-equity-and-preference-shares/): Equity shares and preference shares are both types of stocks or shares that represent ownership in a company. However, they... - [What is the FIFO Method of Inventory Control](https://fundamentalsofaccounting.org/what-is-the-fifo-method-of-inventory-control/): The purpose of this post is to learn more about the FIFO method of inventory control and its related advantages and disadvantages. - [What is a Bill of Exchange?](https://fundamentalsofaccounting.org/what-is-a-bill-of-exchange/): A bill of exchange is a financial instrument or written document that represents an order made by a drawer to... - [Differences Between General Reserves and Capital Reserves](https://fundamentalsofaccounting.org/differences-between-general-reserves-and-capital-reserves/): Reserves are essential for strengthening a company’s financial situation. General reserves and capital reserves are two different kinds of reserves.... - [Cost Accounting Quiz Challenge](https://fundamentalsofaccounting.org/cost-accounting-quiz-challenge/): 1. What is the primary objective of cost accounting? a) Maximizing profits b) Reducing costs c) Providing financial reports d)... - [What is a Promissory Note?](https://fundamentalsofaccounting.org/what-is-a-promissory-note/): A promissory note is a written agreement, often referred to as a “note payable” or “IOU” (I owe you), in... - [Difference Between Shares and Debentures](https://fundamentalsofaccounting.org/difference-between-shares-and-debentures/): While both shares and debentures represent ownership in a company, they differ substantially in their characteristics. Shares and debentures are... - [What is the Buyback of Shares? Purpose and Benefits](https://fundamentalsofaccounting.org/what-is-the-buyback-of-shares-purpose-and-benefits/): We will explore what is buyback of shares and why would companies resort to choosing to buy the issued shares back from their shareholders. - [Difference between COGS and Cost of sales](https://fundamentalsofaccounting.org/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... - [What is Capital Asset Pricing Model (CAPM)?](https://fundamentalsofaccounting.org/capital-asset-pricing-model-capm/): The Capital Asset Pricing Model (CAPM) is a financial model that helps investors understand the expected return on an investment relative to its risk. - [What is Creative Accounting?](https://fundamentalsofaccounting.org/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... - [What is Interest Rate Parity Theory (IRPT)?](https://fundamentalsofaccounting.org/what-is-interest-rate-parity-theory-irpt/): Interest Rate Parity Theory (IRPT) is a concept in international finance that attempts to explain the relationship between exchange rates... - [Write a short note on financial swaps](https://fundamentalsofaccounting.org/short-note-on-financial-swaps/): A financial swap is a derivative contract in which two parties agree to exchange cash flows based on a specified... - [Why Select the Turo and its investments platform?](https://fundamentalsofaccounting.org/why-select-the-turo-and-its-investments-platform/): Turo is providing an interactive platform for the investors, and the investors are getting the interactive platform. You can get... - [Impacts of Inflation on Working Capital Management](https://fundamentalsofaccounting.org/impacts-of-inflation-on-wc/): Inflation is an economic phenomenon characterized by a general increase in the price level of goods and services in an... - [Roles and Functions of Management Accountants](https://fundamentalsofaccounting.org/roles-and-functions-of-management-accountants/): The role of management accountants has evolved over the years from being solely focused on cost accounting to including a... - [Difference Between Secured and Unsecured Loans](https://fundamentalsofaccounting.org/difference-between-secured-and-unsecured-loans/): But what is the difference between secured and unsecured loans? The objective of this post is to clarify the difference between both types of loans. - [The Use of Data Analytics in Forensic Accounting Investigations](https://fundamentalsofaccounting.org/data-analytics-in-forensic-accounting-investigations/): In this article, we will discuss the application of data analytics in forensic accounting inquiries and how it can improve the quality of financial reporting. - [The main difference between fixed and variable costs?](https://fundamentalsofaccounting.org/difference-between-fixed-and-variable-costs/): In this blog, we will explain the difference between fixed and variable costs with practical examples so that you can understand the implications on budgeting. - [What is Net Realisable Value (NRV)?](https://fundamentalsofaccounting.org/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... - [What is a Suspense Account in Financial Accounting?](https://fundamentalsofaccounting.org/what-is-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... - [What is Discounted Payback Period Method?](https://fundamentalsofaccounting.org/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... - [What is an Adjusted Trial Balance?](https://fundamentalsofaccounting.org/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... - [What is Credit Risk?](https://fundamentalsofaccounting.org/what-is-credit-risk/): Credit risk is a term used to describe the potential financial loss a lender may experience when a borrower fails... - [What is Petty Cash in Accounting? Meaning and Purpose](https://fundamentalsofaccounting.org/what-is-petty-cash-in-accounting/): Petty cash is an accounting method used by businesses to manage these small or petty expenses, typically less than $100. - [Top 5 Career Options for Accounting Graduates](https://fundamentalsofaccounting.org/5-career-options-for-accounting-graduates/): In this post, we'll explore the top 5 career options for accounting graduates so you can choose your professional goals based on your interest. - [The Impact of Inventory Control on Business Profitability](https://fundamentalsofaccounting.org/the-impact-of-inventory-control/): In this blog, we will examine the impact of inventory control on business profitability and discuss best practices for optimizing inventory management. - [The importance of gearing ratios in financial analysis](https://fundamentalsofaccounting.org/the-importance-of-gearing-ratios-in-financial-analysis/): Financial gearing ratios are financial metrics that compare a firm’s debt to other financial metrics such as company equity and... - [What is Business Entity Concept?](https://fundamentalsofaccounting.org/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... - [What is the Cost of Goods Sold? Definition | Formula](https://fundamentalsofaccounting.org/cost-of-goods-sold/): Cost of Goods Sold (COGS) is a financial metric representing the cost of the products or services a company sells... - [What is a Funds Flow Statement?](https://fundamentalsofaccounting.org/funds-flow-statement/): A funds flow statement is a financial statement that shows how funds have moved in and out of business during a specific period of time. - [Understanding the Face Value of a Share: A Beginner's Guide](https://fundamentalsofaccounting.org/understanding-the-face-value-of-a-share-a-beginners-guide/): If you’re new to the stock market, you may have heard the term “face value” being used when referring to... - [What is a Stock Exchange? Features and Functions](https://fundamentalsofaccounting.org/what-is-a-stock-exchange-features-and-functions/): The stock exchange is an essential part of the financial system that allows investors to buy and sell securities such... - [What is a Joint Venture? Meaning and Purpose](https://fundamentalsofaccounting.org/what-is-joint-venture-meaning-and-purpose/): A joint venture is a business agreement between two or more parties to pool their resources to achieve a goal or undertake a specific project. - [What is an Accounting ERP System?](https://fundamentalsofaccounting.org/accounting-erp-system/): Accounting ERP (Enterprise Resource Planning) systems are software solutions that assist firms in managing financial data by offering a centralised... - [What is a Fictitious Asset in Accounting?](https://fundamentalsofaccounting.org/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... - [What are sundry expenses?](https://fundamentalsofaccounting.org/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 category. - [What is Prepaid Expense? Journal Entry in Books](https://fundamentalsofaccounting.org/what-is-prepaid-expense/): Prepaid expenses are expenses that a company or business pays for in advance but which have not yet been incurred... - [What is an Ideal Current Ratio?](https://fundamentalsofaccounting.org/what-is-an-ideal-current-ratio/): The current ratio is a financial metric that measures a company’s ability to pay its short-term liabilities with its short-term... - [What is the Matching Principle of Accounting?](https://fundamentalsofaccounting.org/matching-principle-of-accounting/): The Matching Principle is a fundamental accounting concept that aims to ensure that expenses are recognized in the same period... - [Difference between trial balance and balance sheet](https://fundamentalsofaccounting.org/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... - [What Are the Different Types of Dividends](https://fundamentalsofaccounting.org/different-types-of-dividends/): Dividends are a key way for companies to distribute profits to their shareholders. When a company generates earnings, it has... - [What is Material Mix Variance? Meaning and Treatment](https://fundamentalsofaccounting.org/what-is-material-mix-variance/): Material mix variance is a measure of the deviation in the usage of different materials from standard or expected usage. - [What is Trade Discount? Treatment of Trade Discounts](https://fundamentalsofaccounting.org/what-is-trade-discount/): Trade discounts are discounts given to customers who purchase goods or services in large quantities or on a regular basis. - [What is Sales Volume Variance? | Formula](https://fundamentalsofaccounting.org/what-is-sales-volume-variance-formula/): Sales volume variance is an important concept in accounting and finance that helps businesses understand how their sales performance differs... - [What is Window Dressing of Financial Statements?](https://fundamentalsofaccounting.org/what-is-window-dressing/): The window dressing of financial statements is a term that refers to the manipulation of financial information in order to... - [What is Reorder Level in Cost Accounting?](https://fundamentalsofaccounting.org/what-is-reorder-level-in-cost-accounting/): Introduction Cost accounting is essential for businesses to understand their costs and make informed decisions. One of the key concepts... - [What is Del Credere Commission?](https://fundamentalsofaccounting.org/what-is-del-credere-commission/): Del credere commission is a type of commission paid to a buyer's agent or a commission agency in exchange for taking on the buyer's credit risk. - [What is a mortgage calculator?](https://fundamentalsofaccounting.org/what-is-a-mortgage-calculator/): A mortgage calculator is an interactive financial tool that helps individuals determine a mortgage's monthly payment or EMI. - [What Do Mean Sundry Debtors and Sundry Creditors?](https://fundamentalsofaccounting.org/what-do-mean-sundry-debtors-and-sundry-creditors/): Sundry debtors and sundry creditors are words frequently used in the business world. These phrases describe the sums of money... - [Meaning and Explanation of Service Costing](https://fundamentalsofaccounting.org/explanation-of-service-costing/): The term "service costing" refers to the method of calculating the cost per unit of service given. It also refers to the price of particular functions. - [What are Liquidity Ratios? - Meaning and Formula](https://fundamentalsofaccounting.org/liquidity-ratios-meaning-and-formula/): Liquidity ratios measure the short-term financial solvency of a business. Here the short term refers to a period of 12 months or lesser. - [What is Fixed Overhead Volume Variance?](https://fundamentalsofaccounting.org/what-is-fixed-overhead-volume-variance/): The fixed overhead volume variance is also referred to as the production volume variation because this variance is dependent on production volume. - [What are Current Liabilities? Meaning and Types](https://fundamentalsofaccounting.org/what-are-current-liabilities-meaning-and-types/): Current liabilities are those liabilities which are due within one year or one operating cycle, whichever is longer, and these are paid out of current assets. - [What is the Modified Internal Rate of Return (MIRR)?](https://fundamentalsofaccounting.org/what-is-the-modified-internal-rate-of-return-mirr/): The modified internal rate of return (MIRR) is a monetary indicator of an investment's appeal. It is an improved version of IRR method. - [What is Throughput Costing? When to Choose it?](https://fundamentalsofaccounting.org/what-is-throughput-costing/): Throughput costing is a system based on the fact that most production costs will not vary at the level of the individual unit produced. - [Capital Expenditure Vs Revenue expenditures in Accounting](https://fundamentalsofaccounting.org/capital-vs-revenue-expenditures/): Capital Expenditure Capital expenditures comprise costs incurred for the acquisition of a fixed asset, such as land, a building, a... - [What is Trade Discount in Accounting?](https://fundamentalsofaccounting.org/what-is-trade-discount-in-accounting/): In accounting, a trade discount is a reduction in price a manufacturer or wholesaler offers a trade buyer on the... - [What Does Mean Substance Over Form?](https://fundamentalsofaccounting.org/what-does-mean-substance-over-form/): In accounting, the phrase “substance over form” refers to a preference for the underlying truth of a transaction above its... - [What is the Definition of Revenue in Accounting?](https://fundamentalsofaccounting.org/definition-of-revenue-in-accounting/): In accounting, revenue is defined as the total value of all money and other assets received by a company over... - [What is Compound Interest and How to Calculate It?](https://fundamentalsofaccounting.org/what-is-compound-interest-in-interest-calculation/): Compound interest involves earning interest not only on the initial amount of money or principal but also on any previously accumulated interest. - [What is Simple Interest and How to Calculate it?](https://fundamentalsofaccounting.org/what-is-simple-interest-in-interest-calculation/): To start, let's define simple interest. Simple interest is a type of interest calculation where interest is only earned on the original principal amount. - [What is Idle Time in Cost Accounting](https://fundamentalsofaccounting.org/what-is-idle-time-in-cost-accounting/): Let's understand the concept of idle time in cost accounting along with types of idle cost. We will also understand how to manage idle time. - [What is Labour Turnover in Cost Accounting?](https://fundamentalsofaccounting.org/what-is-labour-turnover-in-cost-accounting/): Labour turnover is a crucial metric in cost accounting that measures the rate at which employees leave a company and... - [What is Bin Card in Cost Accounting?](https://fundamentalsofaccounting.org/what-is-bin-card-in-cost-accounting/): In cost accounting, bin cards are physical or electronic records used to track inventory levels in a stockroom, warehouse, or... - [What is the Difference Between Cost and Financial Accounting?](https://fundamentalsofaccounting.org/what-is-the-difference-between-cost-and-financial-accounting/): Financial accounting and cost accounting are two different types of accounting that are used to track and report the financial... - [What is a Cost Centre in Costing? Purpose and Benefits](https://fundamentalsofaccounting.org/what-is-a-cost-centre-in-costing/): Cost centres refer to specific divisions and departments, that are responsible for managing their own expenses and can have costs assigned to them. - [What is Abnormal Loss in Cost Accounting?](https://fundamentalsofaccounting.org/what-is-abnormal-loss-in-cost-accounting/): Let's understand in more depth what is abnormal loss, its causes and the accounting treatment of abnormal losses in the books of cost accounting records. - [What is the Owner's Capital in Accounting?](https://fundamentalsofaccounting.org/what-is-the-owners-capital-in-accounting/): In accounting, the owner’s capital refers to the owners’ equity in the business. This can be calculated by subtracting the... - [What is Working Capital? Why is it Necessary for Businesses?](https://fundamentalsofaccounting.org/what-is-working-capital/): Working capital refers to the difference between a company’s current assets and current liabilities showing the liquidity strength of a... - [What is Cost Accounting? Definition and Objectives](https://fundamentalsofaccounting.org/what-is-cost-accounting-definition-and-objectives/): Cost Accounting is a term used in management accounting to track and analyze the costs incurred in the production process... - [Why internal control is necessary for accounting system](https://fundamentalsofaccounting.org/why-internal-control-is-necessary-for-accounting-system/): In this blog post, we will explore why internal control is necessary for accounting systems and how these practices can benefit businesses of all sizes. - [What is the Impact of Big Data on the Accounting Profession?](https://fundamentalsofaccounting.org/impact-of-big-data-on-the-accounting/): Big data has had far-reaching effects on the accounting industry, and these effects are probably not exclusive to accounting. As... - [Pros and Cons of the Traditional Method of Calculating Overhead](https://fundamentalsofaccounting.org/pros-and-cons-of-the-traditional-method-of-calculating-overhead/): Calculating overhead is an essential part of determining the true cost of goods and services in a business. Overhead costs... - [Treasury Bills and Commercial Paper Explained](https://fundamentalsofaccounting.org/treasury-bills-and-commercial-paper-explained/): Treasury bills, or T-bills, are short-term financial securities issued by both the federal and provincial governments having maturities of up to one year. - [What are different types of annuities](https://fundamentalsofaccounting.org/fundamental-of-annuities-meaning-and-types/): Annuities are financial instruments that guarantee a regular income stream, normally utilized for retirement planning. - [What is the Revenue Recognition Principle?](https://fundamentalsofaccounting.org/revenue-recognition-principle/): As per revenue recognition principle revenue is recognised in the period in which it is earned. Revenue is not considered earned until a product is sold. - [What is Accounting Information System?](https://fundamentalsofaccounting.org/accounting-information-system/): an accounting information system (AIS), refers to a computerised accounting system, as computers and software that processes accounting transactions. - [Top 10 Accounting Software for Indian Businesses](https://fundamentalsofaccounting.org/top-10-accounting-software-for-indian-businesses/): If you are an owner of a small business or a self-employed individual, then you must know that accounting can... - [Top 10 Accounting Software | Cloud and Desktop](https://fundamentalsofaccounting.org/top-10-accounting-software-cloud-and-desktop/): Here we have compiled a list of top 10 accounting software. Let's have a look and decide which one works for you in terms of budget and features. - [What is the Margin of Safety? Margin of Safety Formula](https://fundamentalsofaccounting.org/what-is-the-margin-of-safety/): The Margin of Safety (MoS) refers to the difference between the actual/target output and the break-even level of output/quantity. The... - [What is Labour Efficiency Variance? Meaning and Example](https://fundamentalsofaccounting.org/what-is-labour-efficiency-variance-meaning-and-example/): The labour efficiency variance (LEV) occurs when employees use more or less than standard amount of direct labour hours to produce a product. - [What are Avoidable and Unavoidable Costs?](https://fundamentalsofaccounting.org/what-are-avoidable-and-unavoidable-costs/): In business and financial planning, knowing avoidable and unavoidable costs is critical to budgeting, cost control, and profitability analysis. - [What are the Opportunity Costs? Meaning and Examples](https://fundamentalsofaccounting.org/what-are-opportunity-costs-with-example/): Opportunity costs refer to the benefits lost or profits that are sacrificed while choosing an option over another one that has been chosen. - [Job Order Costing versus Process Costing](https://fundamentalsofaccounting.org/job-order-costing-versus-process-costing/): Job order costing is a form of accounting that attributes individual costs directly to a completed job rather than to the manufacturing department. - [Earnings Per Share | How to Calculate EPS?](https://fundamentalsofaccounting.org/earnings-per-share-how-to-calculate-earnings-per-share/): Earnings per share (EPS) represents the proportion of a company’s net income assigned to each outstanding share of ordinary stock.... - [What is the Time Value of Money?](https://fundamentalsofaccounting.org/what-is-the-time-value-of-money/): The Time Value of Money (TVM) is a fundamental principle in finance that states a dollar today is worth more... - [Meaning, Pros and Cons of Process Costing](https://fundamentalsofaccounting.org/what-is-process-costing/): Process costing is that form of operating costing where standardized goods are produced. It is usually utilised in manufacturing entities. - [ECO-14 Accountancy II - Solved IGNOU Assignment](https://fundamentalsofaccounting.org/eco-14-accountancy-ii-solved-ignou/): Solved IGNOU Assignment - What are the different types of branches? Explain various methods of keeping branch accounts in the books of Head Office. - [What is the Statement of Retained Earnings?](https://fundamentalsofaccounting.org/statement-of-retained-earnings/): The Statement of Retained Earnings reconciles the Retained Earnings account from the beginning to the end of the fiscal year.... - [What is a Bond? Why are they issued?](https://fundamentalsofaccounting.org/what-is-a-bond-why-are-they-issued/): Financial markets provide different instruments through which financing or borrowing of money takes place. Bonds are among the most popular... - [Some Basic Accounting Questions You Should Be Aware of](https://fundamentalsofaccounting.org/some-basic-accounting-questions-you-should-be-aware-of/): General Accounting Concepts If you are an accounting student, these questions must be helpful in ensuring that you know basic... - [What is an Income Statement? Components and Elements](https://fundamentalsofaccounting.org/what-is-an-income-statement/): An income statement is a financial statement that shows a company's revenues and expenses for a specific period of time. - [Meaning, Benefits and Drawbacks of ABC Analysis](https://fundamentalsofaccounting.org/what-is-abc-analysis/): ABC analysis is a widely used inventory management technique that categorizes inventory into three groups: A, B, and C, based on relative importance. - [Differences Between Rights and Bonus Issues of Shares](https://fundamentalsofaccounting.org/rights-and-bonus-issues-of-shares/): In this blog, we will explore the key differences between rights and bonus issue of shares, their advantages, and their effects on shareholders. - [What are the Fixed Costs in Management Accounting?](https://fundamentalsofaccounting.org/what-are-the-fixed-costs/): Fixed costs are expenses that remain constant or unchanged regardless of changes in the level of production or sales within a relevant range. - [What are Flexible Budget and Flexible Budget Variance?](https://fundamentalsofaccounting.org/flexible-budget-and-flexible-budget-variance/): A budget is a future-oriented strategy. Therefore, budgets are planning tools, and they are often produced prior to the beginning... - [What is the Profitability Index?](https://fundamentalsofaccounting.org/what-is-the-profitability-index/): The Profitability Index is simply the profitability of an investment expressed as a percentage of the total return of the... - [What is the Current Ratio and Current Ratio Formula?](https://fundamentalsofaccounting.org/what-is-the-current-ratio-and-current-ratio-formula/): What is the Current Ratio? The current ratio is a measure of the short-term financial liquidity of a business. It... - [What are Contingent Assets and Contingent Liabilities?](https://fundamentalsofaccounting.org/what-are-contingent-assets-and-contingent-liabilities/): Financial statements aim to present a clear and reliable picture of an organisation’s financial position. However, not all economic events... - [What is Change in the Profit Sharing Ratio in Partnership Accounts?](https://fundamentalsofaccounting.org/change-in-the-profit-sharing-ratio/): When a new partner comes into partnership or a partner dies or retires, the profit sharing ratio gets changed and valuation of goodwill needs to be done. - [What are Debentures and Why Are They Issued?](https://fundamentalsofaccounting.org/meaning-of-debentures/): Debentures are a type of corporate bond that is created by companies. The money borrowed to create debentures is called... - [Straight Line Method of Depreciation - Benefits and Limitations](https://fundamentalsofaccounting.org/straight-line-method-of-depreciation-benefits-and-limitations/): Under Straight Line Depreciation, a fixed proportion of the original cost of the asset (less residual value) is written off... - [Differences Between Accounting Concepts and Conventions](https://fundamentalsofaccounting.org/differences-between-accounting-concepts-and-conventions/): Although to a layman, accounting concepts and conventions may sound similar, there are some fundamental differences between them. - [What Are Sweat Equity Shares and Why Are They Issued?](https://fundamentalsofaccounting.org/what-are-sweat-equity-shares/): Sweat equity shares are equity shares granted to employees of a company on favourable terms in recognition of their work.... - [What are Different Types of Financial Statements?](https://fundamentalsofaccounting.org/different-types-of-financial-statements/): In this post, we'll understand different types of financial statements and the purpose served by each type of statement for their users. - [What is Performance Budgeting?](https://fundamentalsofaccounting.org/what-is-performance-budgeting/): The process of performance budgeting entails evaluating an organization’s performance within the context of the organization’s particular objectives as well... - [What is Share Capital and How Does it Work?](https://fundamentalsofaccounting.org/what-is-a-share-what-is-share-capital/): Share capital is the total value of all shares issued by a company to its shareholders. It's the funds a company raises by issuing shares to investors. - [What is the Procedure to Issue Shares for Capital?](https://fundamentalsofaccounting.org/procedure-to-issue-shares-for-capital/): Companies issue shares to raise capital to finance their operations, such as expanding their business, developing new products, or entering... - [What is valuation, and why is there a need for valuation?](https://fundamentalsofaccounting.org/meaning-and-need-of-valuation/): Valuation is appraising or determining the worth of physical or intangible assets, securities, liabilities, and a particular firm as a... - [What are the benefits of business valuation?](https://fundamentalsofaccounting.org/benefits-of-business-valuation/): Business Valuation A business valuation is a method for determining the value of a company and its assets. When deciding... - [What Are the Limitations of Financial Accounting?](https://fundamentalsofaccounting.org/limitations-of-financial-accounting/): Financial accounting is helpful for management as it provides them with valuable information. But, there are limitations of financial accounting too. - [What is the discounted cash flow technique?](https://fundamentalsofaccounting.org/what-is-discounted-cash-flow-technique/): The discounted cash flow technique is a financial forecasting method to determine how much money they will have leftover after... - [What is a Bank Reconciliation Statement?](https://fundamentalsofaccounting.org/bank-reconciliation-statement/): Bank Reconciliation Statement A bank reconciliation statement is a document that reconciles the balances of a bank’s checking account with... - [What is the Price Earnings Ratio?](https://fundamentalsofaccounting.org/what-is-the-price-earnings-ratio/): The Price Earnings ratio is defined as a ration that tells investors how much they're paying for each dollar of a company's earnings. - [IFRS 16 - Leases (Recognition, Measurement and Disclosure)](https://fundamentalsofaccounting.org/ifrs-16-leases-recognition-measurement-and-disclosure/): The recognition, measurement and disclosure issues in IFRS 16 are covered in further detail in the next section below. - [IFRS 17 - Insurance Contracts | Overview | Scope | Objectives](https://fundamentalsofaccounting.org/ifrs-17-insurance-contracts/): IFRS 17 provides guidance on accounting for insurance contracts. It is set to replace IFRS 4, which currently governs accounting... - [IFRS 15 - Revenue from Contracts with Customers](https://fundamentalsofaccounting.org/ifrs-15-revenue-from-contracts-with-customers/): IFRS 15 outlines how and when an IFRS reporter would recognise revenue and requires such companies to make more meaningful, relevant disclosures. - [IFRS 11 - Joint Arrangements | Overview](https://fundamentalsofaccounting.org/ifrs-11-joint-arrangements/): IFRS 11 categorizes joint arrangements into two: joint operations and joint ventures, each with a different accounting treatment. - [IFRS 12-Disclosure of Interests in Other Entities](https://fundamentalsofaccounting.org/ifrs-12-disclosure-of-interests-in-other-entities/): Overview IFRS 12 Disclosure of Interests in Other Entities is a consolidated disclosure standard requiring a wide range of disclosures about an... - [IFRS 13- Fair Value Measurement](https://fundamentalsofaccounting.org/ifrs-13-fair-value-measurement/): IFRS 13 – Fair Value Measurement is a standard developed by the IAS that provides guidance on how to measure... - [IFRS 14 - Regulatory Deferral Accounts](https://fundamentalsofaccounting.org/ifrs-14-regulatory-deferral-accounts/): Overview IFRS 14 Regulatory Deferral Accounts permits an entity that is a first-time adopter of International Financial Reporting Standards to... - [IFRS 10 — Consolidated Financial Statements](https://fundamentalsofaccounting.org/ifrs-10-consolidated-financial-statements/): In this blog, we will discuss the major concepts of IFRS 10, the process of consolidation, and its effect on financial reporting. - [IFRS 7 - Financial Instruments: Disclosures](https://fundamentalsofaccounting.org/ifrs-7-financial-instruments-disclosures/): Overview IFRS 7 Financial Instruments: Disclosures require a business to disclose information on the financial instruments’ relevance to the entity... - [IFRS 8 - Operating Segments](https://fundamentalsofaccounting.org/ifrs-8-operating-segments/): IFRS 8 applies to the separate or individual financial statements of an entity (and to the consolidated financial statements of a group with a parent) - [IFRS 9 Financial Instruments | Meaning and Overview](https://fundamentalsofaccounting.org/ifrs-9-financial-instruments/): International Financial Reporting Standard 9 (IFRS 9) governs the accounting treatment of financial instruments and represents one of the most... - [Treatment of Goodwill: IFRS v. US GAAP](https://fundamentalsofaccounting.org/treatment-of-goodwill-ifrs-vs-gaap/): In this blog post, we will explore the differences in the treatment of Goodwill under IFRS and GAAP and the implications for financial reporting. - [5 Helpful Tips For Getting Rid Of Debt](https://fundamentalsofaccounting.org/helpful-tips-for-getting-rid-of-debt/): In this blog post, we'll be outlining 5 helpful tips and strategies with action plans for getting rid of debt as soon as possible. - [What are mutual fund loads? Meaning and Types](https://fundamentalsofaccounting.org/what-are-mutual-funds-loads/): Mutual fund loads are sales charges or commissions levied on investors when they purchase or sell shares in certain types of mutual funds. - [What is zero-based budgeting? Meaning and Explanation](https://fundamentalsofaccounting.org/what-is-zero-based-budgeting/): Zero-based budgeting, or ZBB, is a strategic approach to financial planning that expects each expense to be justified starting from... - [IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations](https://fundamentalsofaccounting.org/ifrs-5-non-current-assets-held-for-sale/): IFRS 5 offers guidance on the classification, measurement, and disclosure of non-current assets held for sale and discontinued operations. - [IFRS 6 - Exploration for and Evaluation of Mineral Resources](https://fundamentalsofaccounting.org/ifrs-6-evaluation-of-mineral-resources/): IFRS 6 outlines the accounting treatment for the mineral resource exploration and evaluation, for mining, oil, and gas companies to recognize related expenses. - [Meaning and Objectives of Preparing Cash Flow Statement](https://fundamentalsofaccounting.org/preparing-cash-flow-statement/): Cash is critical to a business’s economic life. A business requires cash to pay suppliers, incur daily expenses, and pay... - [What are Ind-ASs and When They Are Applicable?](https://fundamentalsofaccounting.org/what-are-ind-ass-and-when-they-are-applicable/): What is an Ind-AS? An IND-AS is an accounting standard prepared in India in compliance with IFRS. IND AS is... - [IFRS 4 - Insurance Contracts, Scope and Applicability](https://fundamentalsofaccounting.org/ifrs-4-insurance-contracts/): Overview IFRS 4 is the IASB’s first advice on insurance contract accounting – but not the last. A detailed study... - [What is Marginal Cost Equation | Practical Application](https://fundamentalsofaccounting.org/marginal-cost-equation/): The marginal cost equation represents the change in total cost resulting from a one-unit change in the quantity of output produced. - [Integrated Accounting System of Cost Accounting](https://fundamentalsofaccounting.org/integrated-accounting-system-of-cost-accounting/): An integrated accounting system maintains a single ledger. There is no separate ledger for cost accounts. Entries are not based on double entry. - [What is a Non-Integrated Accounting System?](https://fundamentalsofaccounting.org/non-integrated-accounting-system/): In non-integrated accounting system cost and financial accounts are maintained separately and any differences between the both are reconciled. - [Introduction to Contract Costing - Meaning and Types](https://fundamentalsofaccounting.org/contract-costing-explanation/): Contract costing, also known as terminal costing is a form of applying the principles of job costing usually adopted by construction companies. - [What is Job Costing? Advantages and Disadvantages](https://fundamentalsofaccounting.org/introduction-to-job-costing/): Job costing is a cost accounting system that allocates the costs of producing a good or service to the particular... - [IFRS 3 - Business Combinations, Scope and Disclosure Requirements](https://fundamentalsofaccounting.org/ifrs-3-business-combinations/): Overview IFRS 3 Business Combinations describes how an acquirer accounts for the purchase of control of a business (e. g.... - [Introduction to Operating Costing in Cost Accounting](https://fundamentalsofaccounting.org/introduction-to-operating-costing/): Operating Costing in Cost Accounting Operating costing provides information about the cost of operating a company’s production facilities. It includes... - [What are zero coupon bonds and why do people invest in them?](https://fundamentalsofaccounting.org/what-are-zero-coupon-bonds/): What is a Bond? A bond is an obligation of a government, a company or an individual to pay a... - [The Sarbanes-Oxley Act of 2002 | Accounting and Ethics](https://fundamentalsofaccounting.org/the-sarbanes-oxley-act-of-2002/): The Sarbanes-Oxley Act of 2002 is a significant legislation aimed at increasing accountability and transparency in U. S. corporations. It... - [IFRS 2 - Share-Based Payment | Meaning and Scope](https://fundamentalsofaccounting.org/ifrs-2-share-based-payment-meaning-and-scope/): IFRS 2 requires a company to account for share-based payment transactions in its financial statements, including payments to employees or other parties. - [IFRS 1 — First-time Adoption of IFRSs](https://fundamentalsofaccounting.org/ifrs-1-first-time-adoption-of-ifrs/): A first-time adopter is an organisation that declares explicitly for the first time that its general purpose financial statements comply with IFRSs. - [IAS 1 Presentation of Financial Statements](https://fundamentalsofaccounting.org/ias-1-presentation-of-financial-statements/): IAS 1 is the foundation of the IAS framework and sets out the overall requirements for the presentation of financial... - [Cost classification according to the accounting treatment](https://fundamentalsofaccounting.org/cost-classification-according-to-the-accounting-treatment/): Cost classification in cost accounting is the process of categorizing costs into different groups based on specific characteristics or criteria.... - [What Are 12 Accounting Concepts? - A Summary](https://fundamentalsofaccounting.org/12-accounting-concepts-summary/): Accounting Concepts are the underlying assumptions used to produce a business's financial statements. The term "concept" refers to an idea. - [What are Treasury Bills? | Duration of Issue](https://fundamentalsofaccounting.org/introduction-to-treasury-bills/): Treasury bills can be held as a cash reserve or a method to earn interest. T-bills are generally offered at a fraction of their face value. - [Budgeting and Appraisal Techniques [Quiz]](https://fundamentalsofaccounting.org/budgeting-and-appraisal-techniques-quiz/): Take this comprehensive MCQ quiz to assess your knowledge and understanding of budgeting and appraisal techniques. - [What Are Relevant Costs - Meaning and Types](https://fundamentalsofaccounting.org/relevant-cost-meaning-and-types/): Relevant costs are those costs that will be incurred as a result of a decision and thus should be considered when making that decision. - [Fixed Overhead Variances in Cost Accounting](https://fundamentalsofaccounting.org/fixed-overhead-variances/): Fixed overhead variance refers to the difference between the actual fixed production overheads and the absorbed fixed production overheads over... - [When changes in accounting policies are permitted?](https://fundamentalsofaccounting.org/when-changes-in-accounting-policies-are-permitted/): Though ‘consistency’ is a fundamental accounting assumption, it does not imply that accounting policies adopted once cannot be altered ever... - [What are fundamental accounting principles?](https://fundamentalsofaccounting.org/fundamental-accounting-principles/): Accounting is integral to any organization's success, and fundamental accounting principles serve as a foundation for accurate financial reporting. - [Purpose of Financial Accounting, Cost Accounting, GAAP, and IFRS](https://fundamentalsofaccounting.org/cost-accounting-gaap-and-ifrs/): Accounting is also vital in making business decisions through providing transparency, accuracy, and conformity with financial laws. - [What are non-manufacturing costs or period costs?](https://fundamentalsofaccounting.org/non-manufacturing-costs/): Period costs (nonmanufacturing costs) are expenses incurred to maintain business operations but are not required or vital to the manufacturing process. - [What Are the Assumptions and Limitations of CVP Analysis?](https://fundamentalsofaccounting.org/limitations-of-cvp-analysis/): While CVP analysis can be a helpful tool, there are limitations and assumptions that need to be considered when using this tool for decision making. - [Differences between management and tax accounting](https://fundamentalsofaccounting.org/differences-between-management-accounting-and-tax-accounting/): While both are essential in providing financial information, there are some key differences between management accounting and tax accounting - [Key Users of Financial Statements for Decision-Making](https://fundamentalsofaccounting.org/users-of-financial-statements/): But who are the various users of financial statements who rely on these accounting records prepared by accountants? Let's talk about them in detail. - [Ethical Perspectives in the Accounting Profession](https://fundamentalsofaccounting.org/ethical-perspective-in-accounting/): In this article, we have discussed ethical perspectives in the accounting profession using two of the frameworks, utilitarianism and deontology - [What Are Operating and Financing Leases?](https://fundamentalsofaccounting.org/what-are-operating-and-financing-lease/): Leases are also generally categorized under operating leases and financing (or capital) leases with different accounting and financial effects. An... - [What is a sunk cost and its impact on decision making](https://fundamentalsofaccounting.org/what-is-a-sunk-cost/): A sunk cost is that which has been incurred or committed in the past and is, therefore, irrelevant to the decision-making purpose. - [Differences between standard cost and standard costing](https://fundamentalsofaccounting.org/standard-cost-and-standard-costing/): The standard cost is the amount anticipated to be paid for materials or labour. The standard quantity is the estimated amount of materials or labour used. - [Definition of Cost Object in Cost Accounting](https://fundamentalsofaccounting.org/definition-of-cost-object/): A cost object is anything for which a separate measurement of costs is desired. It may be a project, a... - [What is Contribution Margin? Meaning and Calculation](https://fundamentalsofaccounting.org/how-to-calculate-contribution-margin/): There are many alternatives to computing the contribution margin. The most basic one is Contribution = Selling Price - Marginal Cost - [What Are Perpetual and Periodic Stock Systems?](https://fundamentalsofaccounting.org/perpetual-and-periodic-stock-systems/): In this blog, we'll explain perpetual and periodic stock systems, their pros and cons, and what you should know when choosing the right approach. - [What are the Various Functions of IASB?](https://fundamentalsofaccounting.org/what-are-the-functions-of-iasb/): In this article, you will learn more about the formation of IASB, the purposes of IASB (aims of IASB) and various functions of IASB. - [Markowitz Model of Risk-Return Optimization | Assumptions](https://fundamentalsofaccounting.org/markowitz-model-risk-return-optimization/): Markowitz model is an optimal financial investment strategy to maximize the expected return for an investor while maintaining a desired... - [Meaning of Purchase Consideration [Amalgamation Accounting]](https://fundamentalsofaccounting.org/what-is-the-meaning-of-purchase-consideration/): In business purchase accounting, the meaning of purchase consideration is the price that is paid for the acquisition of another company. - [What are the benefits of self-balancing systems?](https://fundamentalsofaccounting.org/what-are-the-benefits-of-self-balancing-systems/): In this blog, we will discuss the major benefits of self-balancing systems and their impact on enhancing financial management of organisations. - [Cost-Volume-Profit Analysis: Advantages and Disadvantages](https://fundamentalsofaccounting.org/cost-volume-profit-analysis/): Cost-Volume-Profit analysis is a financial management tool helping firms understand the relationship between costs, sales volume, and profitability. - [The role of auditors in a Limited Company](https://fundamentalsofaccounting.org/what-is-the-role-of-auditors/): Auditors play a crucial role in public companies, and their responsibilities may vary depending on the company. In some cases,... - [Spa Equipment Leasing as a Financial Business Solution](https://fundamentalsofaccounting.org/spa-equipment-leasing/): These businesses usually opt for spa equipment leasing to upgrade the salons with the latest material and an easy way of arranging the required investment. - [Financial Ratios and Its Importance to Decision Makers](https://fundamentalsofaccounting.org/financial-ratios-and-its-importance/): Financial ratios are one of the most popular financial analysis tools. It works as a bridge between technical and non-technical users of financial statements. - [What is a Trial Balance? | Objectives and Rules](https://fundamentalsofaccounting.org/what-is-a-trial-balance/): A trial balance is a bookkeeping or accounting report that lists the balances in each of an organization's general ledger accounts. - [What are the Procedural Aspects of Accounting?](https://fundamentalsofaccounting.org/procedural-aspects-of-accounting/): The procedural aspects of accounting refers to the process starting from recording entries in journal to preparing the final financial statements. - [What Are the Differences between Bookkeeping and Accounting?](https://fundamentalsofaccounting.org/differences-between-bookkeeping-and-accounting/): Many people think that bookkeeping is the same as accounting. It’s not! There are some similarities, but there are many, many differences. - [What are the Various Subfields of Accounting?](https://fundamentalsofaccounting.org/sub-fields-of-accounting/): To understand the meaning of accounting and how the different subfields of accounting fit together, it is essential to know what they are. - [What is Dual Aspect Concept in Bookkeeping?](https://fundamentalsofaccounting.org/dual-aspect-concept/): The dual aspect concept is foundation of bookkeeping and based on the principle of double-entry, which states that each debit has a matching credit. - [What is the Concept of Measurement in Accounting](https://fundamentalsofaccounting.org/measurement-in-accounting/): Measurement in accounting process refers to determining the value of the transactions so that they are recorded and properly in books of accounts. - [What Are Valuation Principles in Accounting?](https://fundamentalsofaccounting.org/valuation-principles-in-accounting/): Valuation refers to determining the fair value of an entity's assets or liabilities, which is crucial in assessing its overall worth. - [The Rationale for Preparing Cash Flow Statement](https://fundamentalsofaccounting.org/why-prepare-cash-flow-statement/): A cash flow statement is a report that measures and illustrates the company’s ability to generate revenues and meet its financial needs of the company. - [Default and Repossession in Hire Purchase](https://fundamentalsofaccounting.org/default-and-repossession/): In this post, we will discuss default and repossession, which are two crucial elements of the hire purchase accounting system. Let's understand them in detail. - [Characteristics of an Effective Financial Reporting Framework](https://fundamentalsofaccounting.org/effective-financial-reporting-framework/): This post will explore what the major elements are that can characterize an effective financial reporting framework and their significance. - [The Qualitative Characteristics of Financial Information](https://fundamentalsofaccounting.org/the-qualitative-characteristics-of-financial-information/): The qualitative characteristics of financial information refer to the attributes that make it useful for decision-making purposes. - [Net Present Value (NPV) Calculation With Example](https://fundamentalsofaccounting.org/npv-calculation-example/): Here, we have discussed the meaning and the process of Net Present Value (NPV) calculation with an example in a simple manner. - [What are the Fundamental Accounting Assumptions?](https://fundamentalsofaccounting.org/fundamental-accounting-assumptions/): Fundamentals accounting assumptions are the underlying assumptions that are presumed to have been followed while preparing financial statements. - [Methods of Preparing a Trial Balance](https://fundamentalsofaccounting.org/methods-of-preparing-a-trial-balance/): There are three methods of preparing a trial balance: Total method; Balance method, Total and balance method. Let's discuss them in detail: - [Closing entries to pass before preparing a Profit and Loss Account](https://fundamentalsofaccounting.org/closing-entries-in-profit-and-loss/): Before preparing the Profit and Loss Account, we need to close certain accounts such as revenue, expenses and dividend accounts. - [Meaning and Accounting Treatment of Depreciation](https://fundamentalsofaccounting.org/accounting-treatment-of-depreciation/): In this blog, you will learn the meaning, definition and accounting treatment of depreciation in the books of accounts in the correct manner. - [Volkswagen Scandal - An Accounting Perspective](https://fundamentalsofaccounting.org/volkswagen-scandal-accounting-perspective/): Every public organisation must be accountable for its operations from a financial, social, and environmental perspective (Crane & Matten 2010).... - [Trend Analysis - Meaning and Example](https://fundamentalsofaccounting.org/trend-analysis/): Trend analysis is the process of analyzing the financial statements by the computing trend of a series of information using... - [How to Delete a bill in QuickBooks Online?](https://fundamentalsofaccounting.org/delete-a-bill-in-quickbooks-online/): For a new user, it may be difficult to find how to delete a bill in Quickbooks Online. In the bill form, click More at the bottom of the screen. - [What is the Just-in-Time Inventory System](https://fundamentalsofaccounting.org/what-is-just-in-time-inventory-system/): The just-in-time inventory system is a method of stock control that involves a systematic approach to keeping accurate records of all the stock and inventory. - [What are capital structure ratios in accounting?](https://fundamentalsofaccounting.org/what-are-capital-structure-ratios/): Capital structure ratios are financial assess company's long-term financial stability and the proportion of debt and equity in its financing - [History of accounting standard setting in Australia](https://fundamentalsofaccounting.org/history-accounting-standard-setting-australia/): The history of accounting standard setting in Australia has evolved over the years as a function of institutional change and... - [Audit, Assurance and Compliance - A case study of BHP Billiton](https://fundamentalsofaccounting.org/audit-assurance-and-compliance/): The report provides insight into the annual report of BHP Billiton for assessing, analyzing and evaluating the role, responsibilities and duties of the auditor. - [The Development of Bookkeeping and Accounting](https://fundamentalsofaccounting.org/development-accounting-thought/): In the realm of business, the principles of bookkeeping and accounting have played a pivotal role in shaping the way we manage and analyse financial data. - [What is a Chart of Accounts | Meaning and Purpose](https://fundamentalsofaccounting.org/chart-of-accounts/): A chart of accounts is a systematic listing of all accounts employed to classify and record financial transactions in an organization's ledger. - [Ratios are mechanical and incomplete - Comment](https://fundamentalsofaccounting.org/ratios-are-mechanical-and-incomplete-comment/): Ratios are basically figures that represent an element’s value in terms of the other. These are some of the most... - [Advantages and Disadvantages of Perpetual Inventory System](https://fundamentalsofaccounting.org/advantages-and-disadvantages-of-perpetual-inventory-system/): A perpetual inventory system automatically records and updates the inventory account whenever inventory is sold or purchased. - [What is Process Value Analysis? Meaning and Importance](https://fundamentalsofaccounting.org/what-is-process-value-analysis/): Process value analysis is a systematic approach to identify, analyse and improve the value of specific processes within an organisation. - [Meaning and Treatment of Bad and Doubtful Debts](https://fundamentalsofaccounting.org/treatment-of-bad-and-doubtful-debts/): While preparing the financial statements, you will frequently reference bad and doubtful debts. Both these accounts are charges against the profit. - [Causes of disagreement in the Cash Book and Pass Book](https://fundamentalsofaccounting.org/cash-book-and-pass-book/): 1. (a) What is a Bank Reconciliation Statement? Explain the causes of disagreement in the balances shown by the Cash Book and Pass Book. (10) - [Different systems of maintaining the accounts of a dependent branch](https://fundamentalsofaccounting.org/accounts-of-a-dependent-branch/): Question 1. Explain the different systems of maintaining the accounts of a dependent branch. How is profit ascertained under each system? Discuss. - [What is a joint venture? | Methods of Recording Transactions](https://fundamentalsofaccounting.org/what-is-joint-venture/): A Joint Venture (JV) is a temporary form of business where two or more people join together to meet short-term... - [Meaning and Types of Solvency Ratios](https://fundamentalsofaccounting.org/meaning-and-types-of-solvency-ratios/): Solvency ratios are financial measurements used to assess a company's ability to meet its long-term obligations and remain financially stable. - [Comparison between Standard Costing and Budgetary Control](https://fundamentalsofaccounting.org/standard-costing-budgetary-control/): Let's understand in more detail the meaning and functions of both standard costing and budgetary control in cost and management accounting. - [Marginal Costing and Absorption Costing difference](https://fundamentalsofaccounting.org/marginal-costing-and-absorption-costing/): In this post, we are going to discuss the difference between both costing approaches in cost accounting, namely marginal costing and absorption costing. - [What is Cost Tracing - Meaning, Purpose and Challenges](https://fundamentalsofaccounting.org/what-is-cost-tracing/): Cost tracing is an important part of cost estimation. It allows us to compare costs for a given product between different cost centres. - [Meaning and Definition of Absorption Costing](https://fundamentalsofaccounting.org/definition-of-absorption-costing/): Absorption costing is a method of costing that includes all costs incurred in the production process, including both fixed and variable costs. - [Difference between Absorption Costing and Marginal Costing](https://fundamentalsofaccounting.org/difference-absorption-costing-marginal-costing/): Absorption costing and marginal costing are two costing approaches that determine what should be the cost of a product. Let's understand their differences. - [What is the Price Yield Relationship?](https://fundamentalsofaccounting.org/price-yield-relationship-concept/): The Price Yield Relationship (also known as the price yield equation) refers to the relationship between the price of a security and its yield. - [Definition of Overhead in Cost Accounting](https://fundamentalsofaccounting.org/definition-of-overhead-in-costing/): This blog post digs deep into the definition of overhead in cost accounting, and types of overhead accounts, and their treatments in the books of accounts. - [Incomplete records system is unscientific and Inaccurate](https://fundamentalsofaccounting.org/incomplete-records-system-is-unscientific/): An incomplete records system is unscientific, incomplete, inaccurate and unsystematic. It is because incomplete records do not follow double entry rules. - [Financial Analysis of Sainsbury’s](https://fundamentalsofaccounting.org/financial-analysis-of-sainsburys/): This report presents the financial analysis data of Sainsbury for years 2009-2013 shedding light on financial performance and strength of the company. - [What is Activity-Based Costing (ABC)?](https://fundamentalsofaccounting.org/what-is-activity-based-costing/): Activity-based costing is a method that assigns costs to the different activities involved in making a product to allocate a company's funds equitably. - [Ratios that are likely to help the management](https://fundamentalsofaccounting.org/what-are-those-various-ratios-that-are-likely-to-help/): We will discuss some important ratios that help the management in making appropriate financial and investment decisions on behalf of shareholders. - [Differences between imputed costs and capitalised costs](https://fundamentalsofaccounting.org/imputed-costs-and-capitalised-costs/): This blog will discuss the fundamental differences between imputed costs and capitalised costs, and their impact on business decisions and financial statements. - [Factors determining the credit policy of a firm](https://fundamentalsofaccounting.org/factors-determining-the-credit-policy/): In this blog, we will discuss the factors determining the credit policy of firm and and how it impacts the financial position of the business. - [What is Money Measurement Concept in Accounting?](https://fundamentalsofaccounting.org/what-is-money-measurement-concept/): The money measurement concept states that a corporation should only report those accounting transactions that can be represented in terms of money. - [MCQ with Answers about Bonds and Bonds Value](https://fundamentalsofaccounting.org/mcq-with-answers-about-bonds/): A bond that makes no coupon payments is called a _______ bond. A) Treasury B) municipal C) floating rate D) junk E) zero-coupon - [What Are Dependent and Independent Investments?](https://fundamentalsofaccounting.org/dependent-and-independent-investments/): In this blog post, you will learn about two important types of investments in financing i.e. dependent investments and independent investments. - [Internal rate of return method for investment appraisal](https://fundamentalsofaccounting.org/internal-rate-of-return-method/): The Internal Rate of Return (IRR) is one of the most common methods for investment appraisal. IRR is also known as the Internal Capitalization Rate. - [Accounting for not-for-profit organisations](https://fundamentalsofaccounting.org/accounts-for-not-for-ngo/): A not-for-profit organisation is a business or entity established by individuals to further an end, not-for-profit and charitable. Not-for-profit organisations... - [What is financial reconstruction? Objectives and Impacts](https://fundamentalsofaccounting.org/what-is-financial-reconstructing/): Financial reconstruction refers to the process of revamping or restructuring a company's financial situation to improve its viability and profitability. - [Evaluation of Transfer Pricing Policies](https://fundamentalsofaccounting.org/evaluation-transfer-pricing-policies/): Transfer pricing refers to the setting of prices for goods sold between different entities within the same company, often located... - [What is the Meaning of the Ad Valorem?](https://fundamentalsofaccounting.org/what-is-the-meaning-of-the-ad-valorem/): Ad valorem is a Latin phrase meaning "according to value." In essence, it is used to describe a tax levied based on the value of the item being taxed. - [What is unit cost and how to compute unit costs?](https://fundamentalsofaccounting.org/what-is-unit-cost/): Unit costs are computed by dividing some amount of total costs (the numerator) by the related number of units (the denominator). - [Difference between gross margin and contribution margin](https://fundamentalsofaccounting.org/gross-margin-contribution-margin/): Contribution margin vs gross margin; this is a matter of great confusion among many accounting students. Most of them think they both are the same. - [What are IFRSs and Their impacts on accounting in Australia?](https://fundamentalsofaccounting.org/ifrs-affect-accounting-australia/): IFRS are internationally accepted accounting standards that companies around the world need to follow in preparing their accounts. - [Factors determining the dividend policy of a company](https://fundamentalsofaccounting.org/factors-determining-dividend-policy/): A dividend policy is a company’s guidelines strategy to decide how much money it will distribute as a dividend to... - [What are American Depositary Receipts (ADR)?](https://fundamentalsofaccounting.org/what-are-american-depositary-receipts-adr/): An American Depositary Receipt represents shares in a foreign company traded on U.S. exchanges, for instance, the New York Stock Exchange. - [Why forensic accountants are in high demand?](https://fundamentalsofaccounting.org/forensic-accountants-in-demand/): Forensic accountants are in high demand because they are essential to ensure that the financial records of a company are accurate and up to date. - [The Importance of Forensic Accounting for an Organisation](https://fundamentalsofaccounting.org/importance-of-forensic-accounting/): Fraud and corruption have been the biggest challenge in the finance world. Forensic accounting helps uncover cases of financial fraud... - [What Are the Benefits of Forensic Accounting?](https://fundamentalsofaccounting.org/benefits-of-forensic-accounting/): Forensic accounting is the application of accounting, auditing, and investigative skills to collect, analyze, and interpret financial information for use... - [What is a Hedge Fund - Meaning and Purpose](https://fundamentalsofaccounting.org/hedge-funds-meaning/): A hedge fund is typically structured as limited liability partnerships, with the general partner serving as a portfolio manager to investors. - [Features of the Best Business Valuation Software](https://fundamentalsofaccounting.org/best-business-valuation-software/): In this blog, we’ll explore the must-have features of business valuation software and explain how these functionalities can enhance decision-making. - [What is Segment Contribution Margin](https://fundamentalsofaccounting.org/segment-contribution-margin/): The segment contribution margin indicates how much each business segment generates in revenues after meeting variable costs attributable to each... - [Meaning and definition of target costing](https://fundamentalsofaccounting.org/target-costing-meaning/): The strategic cost management tool "target costing" incorporates customer-centric pricing principles instead of traditional firm-oriented pricing. - [Differences Between Traditional Costing and Target Costing](https://fundamentalsofaccounting.org/traditional-methods-vs-target-costing/): Cost management plays a decisive role in determining profitability, pricing strategy, and long-term competitiveness. Organisations rely on costing methods not... - [What are the Objectives of Target Costing?](https://fundamentalsofaccounting.org/objectives-of-target-costing/): The objectives of target costing, then, are twofold: 1) To ensure that products are priced competitively in order to maximize sales; and - [Method of Absorbing Overhead to Various Products or Jobs](https://fundamentalsofaccounting.org/method-absorbing-overhead-various-products-jobs/): A method of overhead absorption in cost accounting is a method of allocating expenses and gains to cost centres within a business. - [Target Costing and Lifecycle Costing Explained](https://fundamentalsofaccounting.org/target-costing-lifecycle-costing/): Target Costing and Lifecycle Costing are two important tools that can be used to manage and control costs throughout the product development process. - [What are the Flaws in Traditional Costing System](https://fundamentalsofaccounting.org/flaws-traditional-costing-system/): A traditional costing system is an accounting approach used to assess the cost of producing products in order to generate a profit. - [Relevant Costs - Meaning and Pitfalls](https://fundamentalsofaccounting.org/relevant-costs-meaning-and-pitfalls/): Relevant costs are those expected future costs that vary under various alternatives. These are the costs that are affected due to decision-making. - [IFRS Accounting for Revenue Recognition and Long-Term Contracts](https://fundamentalsofaccounting.org/ifrs-revenue-recognition/): In this blog post, we will discuss the similarities and contrasts between revenue recognition guidelines under IFRS and GAAP. - [The Pros and Cons of Adopting IFRS](https://fundamentalsofaccounting.org/pros-and-cons-of-adopting-ifrs/): A single reporting framework is one of the main benefits of adopting IFRS while it has practical problems such as converging from local frameworks. - [The Role and Purpose of International Accounting Standards](https://fundamentalsofaccounting.org/role-purpose-international-accounting-standards/): International Accounting Standards (IAS) offer a standardized framework for the preparation and presentation of financial statements. The standards ensure that... - [What are the Different Types of Cost Audit?](https://fundamentalsofaccounting.org/what-are-the-types-of-cost-audit/): Some of the main types of cost audit are statutory cost audit, government-ordered cost audit, and cost audit directed by trade association. - [What is the Importance of Overhead Costs](https://fundamentalsofaccounting.org/what-is-the-importance-of-overhead-costs/): Let's understand what are overhead costs and what is the importance of overhead costs or expenses in running the business operations smoothly. - [How to Calculate Accounting Rate of Return [With Example]](https://fundamentalsofaccounting.org/accounting-rate-of-return/): The accounting rate of return measures the profit generated compared to the initial investment. This is also a famous method after NPV and IRR. - [What is a Cost Audit? - Meaning and Definition](https://fundamentalsofaccounting.org/meaning-and-definition-of-cost-audit/): In this article, we will discuss in great detail what is a cost audit, its objectives and why it is important for manufacturing entities. - [What are limited liability companies?](https://fundamentalsofaccounting.org/limited-liability-companies/): A limited liability company, LLC, is a form of business organization that incorporates elements of corporations and partnerships. As such,... - [What are the advantages of absorption costing?](https://fundamentalsofaccounting.org/advantages-of-absorption-costing/): In this post, we will understand the concept, formula and advantages of absorption costing and their application in cost accounting. - [GAAP and IFRS: Effects of Globalization](https://fundamentalsofaccounting.org/gaap-and-ifrs-the-effects-of-globalization/): Globalisation has considerably influenced the way accounting is practised worldwide. The reason for this is that laws are diverse throughout... - [What are various equity valuation methods?](https://fundamentalsofaccounting.org/what-are-various-equity-valuation-methods/): In this blog post, we'll shed light on the most common equity valuation methods, providing you with a clear understanding of how companies are assessed. - [What is Ratio Analysis? - Meaning and Types of Ratios](https://fundamentalsofaccounting.org/ratio-analysis-meaning-and-examples/): Ratio analysis is one of the most useful techniques for the analysis or interpretation of a financial statement and performance of a company. - [What is Direct Labour Cost Variance](https://fundamentalsofaccounting.org/what-is-direct-labour-cost-variance/): Direct labour cost variance refers to the standard cost of direct labour for the actual number of units produced less the actual cost. - [Partnership Accounting: Preparing Appropriation Account](https://fundamentalsofaccounting.org/partnership-accounting-preparing-appropriation-account/): What is a Profit and Loss Appropriation Account? In this post, we will talk about appropriation accounts in accounting for... - [What are the Advantages of Cost Audit?](https://fundamentalsofaccounting.org/main-advantages-of-cost-audit/): A cost Audit is an important part of a company’s financial and risk management. The main purpose of this cost... - [What is Direct Labour in Cost Accounting?](https://fundamentalsofaccounting.org/what-is-direct-labour-in-costing/): Direct labour is the cost of the labour used to produce a product or service. It includes all wages, salaries, and employee compensation. - [Hedge Fund Strategies in Finance](https://fundamentalsofaccounting.org/hedge-fund-strategies/): You’ve probably heard the term “hedge fund,” but what exactly is it, and how do these firms make money? Unlike... - [Why do variances arise in costing?](https://fundamentalsofaccounting.org/why-do-variances-arise-in-costing/): Variance in cost accounting is the difference between the actual cost of something and the expected cost of something. For... - [The Payback Period Method of Investment Appraisal](https://fundamentalsofaccounting.org/the-payback-period-method/): The payback period method is one of the most basic methods of project evaluation. Usually, it is calculated without considering time value of money. - [Accounts for manufacturing businesses](https://fundamentalsofaccounting.org/accounts-for-manufacturing-businesses/): What are manufacturing businesses? A manufacturing business is that which is involved in the production of manufacture of goods. Typical... - [What are the final accounts? and how to prepare them?](https://fundamentalsofaccounting.org/how-to-prepare-final-accounts/): After passing journal entries for events and transactions, posting them to ledgers, and preparing trial balances, the final step is... - [ERP Implementation Guidance for Management Accountants](https://fundamentalsofaccounting.org/erp-implementation-guidance/): ERP implementation refers to integrating an ERP system with various modules to improve financial data management, analysis, and decision-making. The... - [What is Material Cost Variance in Costing?](https://fundamentalsofaccounting.org/what-is-material-cost-variance/): Material Cost Variance is the difference between the standard cost of the material allowed for the output and the actual cost of the material used. - [What are the Differences between Future and Options?](https://fundamentalsofaccounting.org/difference-between-future-and-options/): Futures and options are both types of financial derivatives that allow traders to speculate on the future price of an... - [Choosing the Best Accounting Books for Students](https://fundamentalsofaccounting.org/choosing-the-best-accounting-books/): Some of the best accounting books that you can buy are books that will provide an overview and explain the... - [What is variance analysis and its usefulness?](https://fundamentalsofaccounting.org/what-is-variance-analysis/): In cost accounting, variance analysis is a technique for ascertaining the causes of differences in the budgeted and actual outputs. - [Net Present Value: Investment Appraisal Tool](https://fundamentalsofaccounting.org/net-present-value-investment-appraisal-tool/): Capital budgeting decisions impact whether a company will have sustainable growth or face challenges in making inefficient investments. Each proposed... - [What are Accounting Standards? | Benefits and Limitations](https://fundamentalsofaccounting.org/what-are-accounting-standards/): Accounting standards are a set of principles, rules and guidelines that companies must follow when preparing and presenting financial statements. - [The concept of accruals and prepayments](https://fundamentalsofaccounting.org/the-concept-of-accruals-and-prepayments/): Accruals and prepayments stand on the basis of the double-entry bookkeeping system and modern financial accounting. Accruals/Prepayments The accruals concept... - [What is Financial Performance Measurement?](https://fundamentalsofaccounting.org/financial-performance-measurement/): Financial performance measurement can be defined as a systematic approach to appraise the efficiency of management in an organisation to... - [What is a Budget Manual? - Meaning and definition](https://fundamentalsofaccounting.org/what-is-a-budget-manual/): A budget manual outlines the policies, procedures, timelines, and responsibilities related to the budgeting process within an organisation. It serves... - [What Are the Limitations of Absorption Costing?](https://fundamentalsofaccounting.org/limitations-absorption-costing/): The term “absorption costing” refers to a method of inventory costing that treats all direct and indirect manufacturing costs as... - [What Are Direct Material Cost Variances?](https://fundamentalsofaccounting.org/direct-material-cost-variances/): Direct material cost variance refers to the difference between direct materials’ actual and standard costs. It is calculated using actual... - [What are accounting estimates in financial accounting?](https://fundamentalsofaccounting.org/what-are-accounting-estimates/): We have learned how to measure a transaction that has already occurred or taken place and for which either some... - [What is the accounting process? Various Steps Explained](https://fundamentalsofaccounting.org/what-is-the-accounting-process/): The accounting process is a methodical procedure that organisations employ to account, analyze, and interpret business transactions. - [Systematic and Unsystematic Risks in Finance](https://fundamentalsofaccounting.org/systematic-unsystematic-risks/): Unsystematic risk is the risk of loss that cannot be diversified away through investment in any of the securities in a broadly diversified portfolio. - [Basics of Cost and Costing in Management Accounting](https://fundamentalsofaccounting.org/basics-of-cost-and-costing/): In this article, we will discuss concepts of cost and costing in management accounting to understand their implications in solving problems. - [What is Momentum Analysis? When is it Used?](https://fundamentalsofaccounting.org/what-is-momentum-analysis/): In finance, momentum analysis is a technique used to assess the speed and direction of a security’s price movement. It... - [How to calculate liquidity ratios?- With examples](https://fundamentalsofaccounting.org/liquidity-ratios-meaning-types-and-calculation/): In this post, we will explain how to calculate liquidity ratios, their importance, and what they reveal about a business's financial position. - [What is a Perpetual Inventory System?](https://fundamentalsofaccounting.org/perpetual-inventory-system/): Businesses that use a perpetual inventory system maintain accurate records of the costs associated with each inventory acquisition and sale.... - [What is the Importance of Trading Account in Final Accounts](https://fundamentalsofaccounting.org/what-is-the-importance-of-trading-account/): In this post, we will learn the importance of Trading Account, its structure, and how it helps in evaluating a company’s financial health. - [Closing Entries to Prepare Trading Account](https://fundamentalsofaccounting.org/closing-entries-trading-account/): With the completion of an accounting period comes the important activity of preparing the financial statements. The first thing one... - [What is Triple Bottom Line Reporting (TBLR)?](https://fundamentalsofaccounting.org/what-is-triple-bottomline-reporting/): Triple Bottom Line Reporting (TBLR) is a new process that focuses on reporting, assessing and improving organisational performance for sustainability. - [What Are the Factors Governing Dividend Decisions?](https://fundamentalsofaccounting.org/factors-governing-dividend-decision/): This article will discuss various critical factors governing dividend decisions and how they impact companies and shareholders. - [Meaning of Treasury Stock and Its Accounting Treatment](https://fundamentalsofaccounting.org/treasury-stock-accounting-treatment/): Treasury stock is the stock issued by the company and may later be reacquired by the company from its shareholders.... - [Classification of Accounts in Bookkeeping](https://fundamentalsofaccounting.org/classification-of-accounts/): Classification of accounts is one of the most important part of bookkeeping which facilitates the organization of financial data for reporting and analysis. - [How to Prepare Profit and Loss Account?](https://fundamentalsofaccounting.org/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... - [What are Coverage Ratios - Meaning and Calculation](https://fundamentalsofaccounting.org/coverage-ratios-meaning/): A coverage ratio is a common metric used in financial analysis that determines how much of a company's assets are covered by its liabilities. - [List of Indian Accounting Standards (IND ASs)](https://fundamentalsofaccounting.org/list-of-indian-accounting-standards/): The Indian Accounting Standards (IND-AS) are a set of accounting standards notified by the Ministry of Corporate Affairs, Government of... - [Why should India adopt IFRS? Potential Benefits Explained](https://fundamentalsofaccounting.org/why-should-india-adopt-ifrs/): IFRS (International Financial Reporting Standards) is a set of accounting principles that are used globally for financial reporting. - [What is Financial Statement Analysis?](https://fundamentalsofaccounting.org/financial-statement-analysis/): The term ‘financial statement analysis‘ refers to determining the firm’s financial position by reviewing and analysing the balance sheet items,... - [Tips to Consider While Buying Used Tow Trucks for Your Business](https://fundamentalsofaccounting.org/buying-used-tow-trucks/): There are so many tow trucks available on the market. Therefore, it is challenging for business owners to select the types that will greatly impact the fleet. - [What are the Various Objectives and Functions of FASB?](https://fundamentalsofaccounting.org/objectives-and-functions-of-fasb/): The main functions of FASB include to Maintain the standards to reflect any changes in the method of preparing the financial statements. - [The Infamous Enron Accounting Scandal](https://fundamentalsofaccounting.org/the-enron-accounting-scandal/): In the late 1990s, Enron was one of the largest companies in the United States. It was an energy company... - [The Meaning of Consignment Accounting](https://fundamentalsofaccounting.org/meaning-of-consignment-accounting/): Consignment refers to selling the goods manufactured by a company through an agent. In this arrangement, there are two parties consigner and consignee. - [What are various methods of valuation of goodwill?](https://fundamentalsofaccounting.org/methods-of-valuation-of-goodwill/): There are five methods of valuation of Goodwill. However, average maintainable profit method and super profit method are most popular ones. - [What are Direct Expenses in Costing? - Meaning and Examples](https://fundamentalsofaccounting.org/what-are-direct-expenses/): A direct expense is an expense that can be traced back to a specific cost centre. Direct expenses are also known as chargeable expenses. - [Direct Materials- Meaning and Examples](https://fundamentalsofaccounting.org/direct-materials-meaning-and-examples/): Direct Materials are those materials that can be identified in the product, measured and directly charged to the product to the product. - [Primary Market and Secondary Market](https://fundamentalsofaccounting.org/primary-market-and-secondary-market/): In order to make it easier to buy and sell securities, the primary market and secondary market are two crucial elements of the financial ecosystem. - [Treatment of Goodwill in a Business Purchase](https://fundamentalsofaccounting.org/treatment-of-goodwill-in-a-business-purchase/): The treatment of goodwill in a business purchase is a crucial aspect that can impact the overall financial picture and success of the transaction. - [What do you mean by Systematic Risk](https://fundamentalsofaccounting.org/what-do-you-mean-by-systematic-risk/): Systematic risk refers to the variability of return of portfolio associated with change occur in the economic, political and social system. - [What Are Accounting Principles, Concepts and Conventions?](https://fundamentalsofaccounting.org/principles-concepts-conventions/): Accounting is a fundamental aspect of running a business. It involves recording, analyzing, and interpreting financial transactions to provide an... - [Accounting Policies, Selection and Changes in Accounting Policies](https://fundamentalsofaccounting.org/changes-in-accounting-policies/): Accounting policies are the specific policies and procedures used by a company to prepare its financial statements. These include the... - [What is the Accrual Concept in Financial Accounting?](https://fundamentalsofaccounting.org/accrual-concept-in-the-financial-accounting/): The accrual concept is an accounting method used to record revenue and expenses when they occur rather than when they... - [What Are the Differences between IFRS and GAAP?](https://fundamentalsofaccounting.org/differences-between-ifrs-and-gaaps/): In this article, you will learn the differences between IFRS and GAAP, their implications in international accounting and financial reporting practices. - [What are various types of sales variances in cost accounting](https://fundamentalsofaccounting.org/types-of-sales-variances/): Because two different factors are affecting the total sales variance, they must be divided into the following 2 types of sales variances: - [What is the Budget Period in Accounting?](https://fundamentalsofaccounting.org/what-is-the-budget-period-in-accounting/): The budget period is the period for recording costs and income figures for a set of accounts. Simply, it is the period that the budget is prepared for. - [What is the Ledger and its purpose in Bookkeeping?](https://fundamentalsofaccounting.org/what-is-the-ledger/): Let's explore what is the ledger and the purposes it serves in the bookkeeping and accounting functions and what are rules of posting to/from ledger. - [Jalani Distributors sold three light commercial vans](https://fundamentalsofaccounting.org/jalani-distributors-sold-three-light/): Jalani Distributors sold three light commercial vans to Jain Enterprises on January 1, 2017, on hire purchase system. The price... - [Fundamental and Technical Analysis in the Stock Market](https://fundamentalsofaccounting.org/fundamental-technical-analysis/): The purpose of this article is to make you aware of 'fundamental analysis and technical technical analysis' in the context of financial markets. --- # # Detailed Content ## Pages - Published: 2022-10-16 - Modified: 2025-02-01 - URL: https://fundamentalsofaccounting.org/about-us/ --- - Published: 2021-10-03 - Modified: 2023-04-25 - URL: https://fundamentalsofaccounting.org/privacy-policy/ --- > Contact us if you have any query or question about our website or topic problem. We will try our best to resolve your problem. - Published: 2019-12-02 - Modified: 2024-05-08 - URL: https://fundamentalsofaccounting.org/say-hello/ --- --- ## Posts - Published: 2025-11-12 - Modified: 2025-11-12 - URL: https://fundamentalsofaccounting.org/depreciation-amortisation-and-depletion/ - Categories: Financial Accounting Concepts --- - Published: 2025-11-12 - Modified: 2025-11-12 - URL: https://fundamentalsofaccounting.org/common-mistakes-students-make-while-calculating-depreciation/ - Categories: Financial Accounting Concepts --- - Published: 2025-11-12 - Modified: 2025-11-12 - URL: https://fundamentalsofaccounting.org/written-down-value-method-of-depreciation/ - Categories: Financial Accounting Concepts --- - Published: 2025-11-10 - Modified: 2025-11-10 - URL: https://fundamentalsofaccounting.org/what-is-a-fractional-cfo/ - Categories: Financial Accounting Concepts --- - Published: 2025-09-22 - Modified: 2025-09-22 - URL: https://fundamentalsofaccounting.org/what-is-an-initial-public-offer-ipo/ - Categories: Corporate Accounting --- - Published: 2025-09-22 - Modified: 2025-09-22 - URL: https://fundamentalsofaccounting.org/5-key-aspects-of-technical-analysis-of-shares/ - Categories: Corporate Accounting --- - Published: 2025-09-05 - Modified: 2025-09-05 - URL: https://fundamentalsofaccounting.org/only-2-gst-rates-now-relief-for-consumers-and-businesses/ - Categories: Accounting and Finance News --- > The Matching Concept is the concept that all expenses should be accounted for in the same period as the revenues they relate to. - Published: 2025-08-29 - Modified: 2025-08-29 - URL: https://fundamentalsofaccounting.org/what-is-the-matching-concept-in-accounting/ - Categories: Financial Accounting Concepts --- > Concerns raised over specific derivative transactions have placed IndusInd Bank, the leading private sector lender in India, under regulatory scrutiny. - Published: 2025-04-17 - Modified: 2025-06-14 - URL: https://fundamentalsofaccounting.org/why-forensic-audit-was-initiated/ - Categories: Forensic Accounting --- - Published: 2025-04-01 - Modified: 2026-01-14 - URL: https://fundamentalsofaccounting.org/operating-profit-vs-gross-profit/ - Categories: Financial Accounting Concepts --- > In accounting, the terms events and transactions are often used interchangeably by those unfamiliar with their technical distinctions. - Published: 2025-03-30 - Modified: 2025-03-30 - URL: https://fundamentalsofaccounting.org/events-and-transactions/ - Categories: Financial Accounting Concepts --- > Creative accounting is a financial strategy that involves manipulating financial statements to present a more favourable image of a company’s financial health. - Published: 2025-03-22 - Modified: 2025-03-22 - URL: https://fundamentalsofaccounting.org/creative-accounting/ - Categories: Financial Accounting Concepts --- - Published: 2025-03-19 - Modified: 2025-03-26 - URL: https://fundamentalsofaccounting.org/what-is-cash-book-features-and-objectives/ - Categories: Financial Accounting Concepts --- > A common-size financial statement is a type of financial statement where each line item is presented as a percentage of a base figure. - Published: 2025-03-10 - Modified: 2025-03-10 - URL: https://fundamentalsofaccounting.org/common-size-statement-in-accounting/ - Categories: Financial Accounting Concepts --- > For accounting students, professionals and businesses it is critical to understand the implications of Goods and Services Tax on accounting. - Published: 2025-03-09 - Modified: 2025-03-26 - URL: https://fundamentalsofaccounting.org/what-is-goods-and-services-tax-gst/ - Categories: Tax Accounting --- > It is important for investors to understand the differences between interim and final dividends because it informs their financial decisions. - Published: 2025-03-09 - Modified: 2025-03-09 - URL: https://fundamentalsofaccounting.org/difference-between-interim-and-final-dividend/ - Categories: Corporate Accounting --- > Stock control cards contains a complete record of the movement of stock to monitor stock levels, avoid shortages, and maximize stock management. - Published: 2025-03-05 - Modified: 2025-03-10 - URL: https://fundamentalsofaccounting.org/what-are-stock-control-cards/ - Categories: Cost Accounting --- > This article explores 5 legit expenses that can help reduce tax liabilities in a legitimate and compliant manner. - Published: 2025-02-16 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/5-legit-expenses-that-reduce-tax/ - Categories: Tax Accounting --- > The Weighted Average Cost of Capital (WACC) is a crucial financial metric that represents a company's overall cost of financing its assets. - Published: 2025-01-30 - Modified: 2025-01-30 - URL: https://fundamentalsofaccounting.org/weighted-average-cost-of-capital/ - Categories: Financial Management --- > In this post, we are going to learn about the top 5 theories of dividend decision and their underlying assumptions. - Published: 2025-01-30 - Modified: 2025-02-06 - URL: https://fundamentalsofaccounting.org/top-5-theories-of-dividend-decision/ - Categories: Corporate Accounting --- > Reconstitution of partnership refers to a change in the existing structure or terms of a partnership firm while keeping its business operations intact. - Published: 2024-11-19 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/reconstitution-of-partnership/ - Categories: Financial Accounting Concepts - Tags: Partnership Accounting --- > A receipts and payments account is a type of financial statement, summarizing all cash and bank transactions of an organisation for an accounting period. - Published: 2024-11-16 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/what-is-receipts-and-payments-account/ - Categories: Financial Accounting Concepts --- > Therefore, in this article, we are going to discuss some of the key differences between revenue and income so you can know their roles in accounting. - Published: 2024-11-12 - Modified: 2025-01-11 - URL: https://fundamentalsofaccounting.org/key-differences-between-revenue-and-income/ - Categories: Financial Accounting Concepts --- - Published: 2024-11-12 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/what-are-consolidated-financial-reports/ - Categories: Financial Accounting Concepts --- - Published: 2024-11-12 - Modified: 2024-11-12 - URL: https://fundamentalsofaccounting.org/benefits-of-issuing-debentures-rather-than-shares/ - Categories: Corporate Accounting --- - Published: 2024-11-12 - Modified: 2025-03-09 - URL: https://fundamentalsofaccounting.org/ai-the-work-of-accountants-easier/ - Categories: Accounting Tools and Software --- - Published: 2024-11-12 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/what-are-esg-reporting-frameworks/ - Categories: Corporate Accounting --- - Published: 2024-08-18 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/economic-batch-quantity-with-example/ - Categories: Cost Accounting --- > The going concern concept is a principle that assumes a business entity will continue operating for the foreseeable future, typically in the next 12 months. - Published: 2024-04-11 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/what-is-the-going-concern-concept/ - Categories: Financial Accounting Concepts --- > We will understand the key differences between net profit and gross profit and how both affect a firm's financial performance in this blog. - Published: 2024-04-11 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/net-profit-and-gross-profit/ - Categories: Financial Accounting Concepts --- - Published: 2024-02-22 - Modified: 2024-04-05 - URL: https://fundamentalsofaccounting.org/liquidation-of-companies-meaning-and-procedure/ - Categories: Corporate Accounting --- - Published: 2024-02-21 - Modified: 2024-02-21 - URL: https://fundamentalsofaccounting.org/calls-in-arrear-and-calls-in-advance/ - Categories: Corporate Accounting --- > Let's explore the difference between fixed and floating rates of interest, their advantages and disadvantages, and factors to consider when making a decision. - Published: 2024-01-13 - Modified: 2025-03-04 - URL: https://fundamentalsofaccounting.org/fixed-and-floating-rate-of-interest/ - Categories: Financial Accounting Concepts --- - Published: 2024-01-13 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/trading-and-investing/ - Categories: Financial Accounting Concepts --- - Published: 2024-01-07 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/computerised-accounting-systems/ - Categories: Financial Accounting Concepts --- - Published: 2024-01-04 - Modified: 2025-08-06 - URL: https://fundamentalsofaccounting.org/what-is-meant-by-impairment-of-assets/ - Categories: Financial Accounting Concepts --- - Published: 2024-01-04 - Modified: 2025-03-04 - URL: https://fundamentalsofaccounting.org/reporting-period-in-accounting/ - Categories: Financial Accounting Concepts --- > A consolidated financial statement is a report of financial position and performance of a parent company and its subsidiaries as a single entity. - Published: 2024-01-04 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/consolidated-financial-statement/ - Categories: Financial Accounting Concepts --- - Published: 2023-12-24 - Modified: 2023-12-24 - URL: https://fundamentalsofaccounting.org/what-is-securities-transaction-tax-stt/ - Categories: Tax Accounting --- - Published: 2023-12-24 - Modified: 2023-12-24 - URL: https://fundamentalsofaccounting.org/indirect-method-of-preparing-cash-flow-statement/ - Categories: Financial Accounting Concepts --- > This blog will explore what the Capital Adequacy Ratio entails, its significance in the banking sector, and the global standards guiding its implementation. - Published: 2023-12-24 - Modified: 2024-12-13 - URL: https://fundamentalsofaccounting.org/what-is-the-capital-adequacy-ratio/ - Categories: Financial Accounting Concepts --- - Published: 2023-12-20 - Modified: 2024-11-17 - URL: https://fundamentalsofaccounting.org/fintech-disruptive-technologies/ - Categories: Corporate Accounting --- > Asset management is a systematic process of developing, maintaining and selling assets to maximize their value and achieve organizational goals. - Published: 2023-12-20 - Modified: 2025-08-06 - URL: https://fundamentalsofaccounting.org/what-is-asset-management/ - Categories: Corporate Accounting --- - Published: 2023-12-12 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/5-important-types-of-technical-analysis/ - Categories: Corporate Accounting --- - Published: 2023-11-23 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/production-volume-variance/ - Categories: Cost Accounting --- - Published: 2023-11-23 - Modified: 2023-11-23 - URL: https://fundamentalsofaccounting.org/what-are-joint-products-and-by-products/ - Categories: Financial Accounting Concepts --- - Published: 2023-11-20 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/benefits-of-issuing-shares/ - Categories: Corporate Accounting --- - Published: 2023-11-20 - Modified: 2024-04-05 - URL: https://fundamentalsofaccounting.org/what-are-non-current-assets-meaning-and-examples/ - Categories: Financial Accounting Concepts --- > In this blog post, we will explore the concept of goodwill in accounting, its importance, and how it is calculated under different circumstances. - Published: 2023-11-20 - Modified: 2024-04-08 - URL: https://fundamentalsofaccounting.org/goodwill-in-accounting/ - Categories: Financial Accounting Concepts --- - Published: 2023-11-20 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/abnormal-process-loss/ - Categories: Financial Accounting Concepts --- - Published: 2023-11-06 - Modified: 2025-02-19 - URL: https://fundamentalsofaccounting.org/5-type-of-assets-that-are-written-off/ - Categories: Financial Accounting Concepts --- > A Forward Exchange Contract is a financial agreement where two parties agree to exchange currencies at a predetermined rate on a future date. - Published: 2023-10-22 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/what-is-a-forward-exchange-contract/ - Categories: Corporate Accounting --- - Published: 2023-09-20 - Modified: 2023-10-22 - URL: https://fundamentalsofaccounting.org/what-is-the-swap-ratio/ - Categories: Corporate Accounting --- - Published: 2023-09-20 - Modified: 2026-01-02 - URL: https://fundamentalsofaccounting.org/what-is-the-difference-between-a-merger-and-a-demerger/ - Categories: Corporate Accounting --- - Published: 2023-09-04 - Modified: 2023-11-06 - URL: https://fundamentalsofaccounting.org/profit-loss-on-incomplete-contracts/ - Categories: Cost Accounting --- - Published: 2023-09-04 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/the-international-accounting-standards-board/ - Categories: Accounting Regulatory Bodies --- > In this blog post, we will explore the meaning and scope of accounting, understanding its significance in finance and business operations. - Published: 2023-09-02 - Modified: 2024-04-13 - URL: https://fundamentalsofaccounting.org/what-is-the-meaning-and-scope-of-accounting/ - Categories: Financial Accounting Concepts --- > The Double Entry System of bookkeeping is an accounting method where every financial transaction is recorded in at least two accounts. - Published: 2023-08-28 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/double-entry-system-of-book-keeping/ - Categories: Financial Accounting Concepts --- - Published: 2023-08-22 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/batch-costing-vs-job-costing/ - Categories: Financial Accounting Concepts --- > This blog highlights 5 ways to improve liquidity ratios from optimizing working capital management to reducing overhead expenses. - Published: 2023-08-20 - Modified: 2025-01-23 - URL: https://fundamentalsofaccounting.org/5-ways-to-improve-liquidity-ratios/ - Categories: Financial Accounting Concepts --- - Published: 2023-08-15 - Modified: 2025-03-04 - URL: https://fundamentalsofaccounting.org/what-is-a-cost-plus-contract/ - Categories: Cost Accounting --- - Published: 2023-07-30 - Modified: 2023-07-30 - URL: https://fundamentalsofaccounting.org/accounting-for-payroll/ - Categories: Financial Accounting Concepts --- - Published: 2023-07-24 - Modified: 2023-07-24 - URL: https://fundamentalsofaccounting.org/bank-overdraft-as-a-source-of-finance/ - Categories: Financial Accounting Concepts --- - Published: 2023-07-19 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/production-budget/ - Categories: Cost Accounting --- - Published: 2023-07-13 - Modified: 2025-03-05 - URL: https://fundamentalsofaccounting.org/what-is-economic-order-quantity-and-its-assumptions/ - Categories: Cost Accounting --- - Published: 2023-07-13 - Modified: 2025-02-13 - URL: https://fundamentalsofaccounting.org/what-is-meant-by-annual-holding-cost-in-costing/ - Categories: Cost Accounting --- - Published: 2023-07-13 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/a-short-note-on-the-lifo-method-of-inventory-valuation/ - Categories: Cost Accounting --- - Published: 2023-07-13 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/spoilage-and-defectives-in-cost-accounting/ - Categories: Cost Accounting --- > In this blog, we will discuss the most important differences between lease and hire purchase, their working and suitability based on needs. - Published: 2023-07-11 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/differences-between-lease-and-hire-purchase/ - Categories: Financial Accounting Concepts --- - Published: 2023-07-11 - Modified: 2025-08-06 - URL: https://fundamentalsofaccounting.org/differences-between-accounting-and-auditing/ - Categories: Financial Accounting Concepts --- - Published: 2023-07-11 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/differences-between-equity-and-preference-shares/ - Categories: Corporate Accounting --- > The purpose of this post is to learn more about the FIFO method of inventory control and its related advantages and disadvantages. - Published: 2023-06-23 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/what-is-the-fifo-method-of-inventory-control/ - Categories: Cost Accounting --- - Published: 2023-06-23 - Modified: 2025-01-23 - URL: https://fundamentalsofaccounting.org/what-is-a-bill-of-exchange/ - Categories: Financial Accounting Concepts --- - Published: 2023-06-22 - Modified: 2024-01-07 - URL: https://fundamentalsofaccounting.org/differences-between-general-reserves-and-capital-reserves/ - Categories: Financial Accounting Concepts --- - Published: 2023-06-20 - Modified: 2024-01-07 - URL: https://fundamentalsofaccounting.org/cost-accounting-quiz-challenge/ - Categories: Cost Accounting --- - Published: 2023-06-18 - Modified: 2023-06-18 - URL: https://fundamentalsofaccounting.org/what-is-a-promissory-note/ - Categories: Financial Accounting Concepts --- - Published: 2023-06-15 - Modified: 2023-10-04 - URL: https://fundamentalsofaccounting.org/difference-between-shares-and-debentures/ - Categories: Corporate Accounting --- > We will explore what is buyback of shares and why would companies resort to choosing to buy the issued shares back from their shareholders. - Published: 2023-06-13 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/what-is-the-buyback-of-shares-purpose-and-benefits/ - Categories: Corporate Accounting --- - Published: 2023-05-25 - Modified: 2023-05-27 - URL: https://fundamentalsofaccounting.org/cogs-and-cost-of-sales/ - Categories: Financial Accounting Concepts --- > The Capital Asset Pricing Model (CAPM) is a financial model that helps investors understand the expected return on an investment relative to its risk. - Published: 2023-05-20 - Modified: 2024-09-21 - URL: https://fundamentalsofaccounting.org/capital-asset-pricing-model-capm/ - Categories: Corporate Accounting --- - Published: 2023-05-12 - Modified: 2023-11-06 - URL: https://fundamentalsofaccounting.org/what-is-creative-accounting/ - Categories: Financial Accounting Concepts --- - Published: 2023-05-12 - Modified: 2024-01-07 - URL: https://fundamentalsofaccounting.org/what-is-interest-rate-parity-theory-irpt/ - Categories: Financial Management --- - Published: 2023-05-12 - Modified: 2024-03-21 - URL: https://fundamentalsofaccounting.org/short-note-on-financial-swaps/ - Categories: Financial Management --- - Published: 2023-05-12 - Modified: 2023-05-12 - URL: https://fundamentalsofaccounting.org/why-select-the-turo-and-its-investments-platform/ - Categories: Financial Management --- - Published: 2023-05-11 - Modified: 2023-10-22 - URL: https://fundamentalsofaccounting.org/impacts-of-inflation-on-wc/ - Categories: Corporate Accounting --- - Published: 2023-05-04 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/roles-and-functions-of-management-accountants/ - Categories: Cost Accounting --- > But what is the difference between secured and unsecured loans? The objective of this post is to clarify the difference between both types of loans. - Published: 2023-04-27 - Modified: 2024-04-13 - URL: https://fundamentalsofaccounting.org/difference-between-secured-and-unsecured-loans/ - Categories: Financial Accounting Concepts --- > In this article, we will discuss the application of data analytics in forensic accounting inquiries and how it can improve the quality of financial reporting. - Published: 2023-04-24 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/data-analytics-in-forensic-accounting-investigations/ - Categories: Forensic Accounting --- > In this blog, we will explain the difference between fixed and variable costs with practical examples so that you can understand the implications on budgeting. - Published: 2023-04-24 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/difference-between-fixed-and-variable-costs/ - Categories: Financial Accounting Concepts --- - Published: 2023-04-24 - Modified: 2023-04-24 - URL: https://fundamentalsofaccounting.org/what-is-net-realisable-value-nrv/ - Categories: Financial Accounting Concepts --- - Published: 2023-04-21 - Modified: 2024-04-25 - URL: https://fundamentalsofaccounting.org/what-is-suspense-account-in-financial-accounting/ - Categories: Financial Accounting Concepts --- - Published: 2023-04-21 - Modified: 2023-04-21 - URL: https://fundamentalsofaccounting.org/what-is-discounted-payback-period-method/ - Categories: Financial Accounting Concepts --- - Published: 2023-04-14 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/what-is-an-adjusted-trial-balance/ - Categories: Financial Accounting Concepts --- - Published: 2023-04-05 - Modified: 2023-10-20 - URL: https://fundamentalsofaccounting.org/what-is-credit-risk/ - Categories: Financial Accounting Concepts --- > Petty cash is an accounting method used by businesses to manage these small or petty expenses, typically less than $100. - Published: 2023-04-05 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/what-is-petty-cash-in-accounting/ - Categories: Financial Accounting Concepts --- > In this post, we'll explore the top 5 career options for accounting graduates so you can choose your professional goals based on your interest. - Published: 2023-03-30 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/5-career-options-for-accounting-graduates/ - Categories: Financial Accounting Concepts --- > In this blog, we will examine the impact of inventory control on business profitability and discuss best practices for optimizing inventory management. - Published: 2023-03-23 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/the-impact-of-inventory-control/ - Categories: Financial Accounting Concepts --- - Published: 2023-03-23 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/the-importance-of-gearing-ratios-in-financial-analysis/ - Categories: Corporate Accounting --- - Published: 2023-03-23 - Modified: 2024-03-26 - URL: https://fundamentalsofaccounting.org/what-is-business-entity-concept/ - Categories: Financial Accounting Concepts --- - Published: 2023-03-21 - Modified: 2023-07-11 - URL: https://fundamentalsofaccounting.org/cost-of-goods-sold/ - Categories: Financial Accounting Concepts --- > A funds flow statement is a financial statement that shows how funds have moved in and out of business during a specific period of time. - Published: 2023-03-21 - Modified: 2023-05-21 - URL: https://fundamentalsofaccounting.org/funds-flow-statement/ - Categories: Financial Management --- - Published: 2023-03-20 - Modified: 2023-03-20 - URL: https://fundamentalsofaccounting.org/understanding-the-face-value-of-a-share-a-beginners-guide/ - Categories: Financial Accounting Concepts --- - Published: 2023-03-20 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/what-is-a-stock-exchange-features-and-functions/ - Categories: Corporate Accounting --- > A joint venture is a business agreement between two or more parties to pool their resources to achieve a goal or undertake a specific project. - Published: 2023-03-15 - Modified: 2025-04-14 - URL: https://fundamentalsofaccounting.org/what-is-joint-venture-meaning-and-purpose/ - Categories: Financial Accounting Concepts --- - Published: 2023-03-13 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/accounting-erp-system/ - Categories: Accounting Tools and Software --- - Published: 2023-03-13 - Modified: 2025-02-19 - URL: https://fundamentalsofaccounting.org/what-is-a-fictitious-asset-in-accounting/ - Categories: Financial Accounting Concepts --- > Sundry expenses refer to all those small, miscellaneous expenses that businesses incur during their operations but don't fall under any specific category. - Published: 2023-03-10 - Modified: 2023-06-09 - URL: https://fundamentalsofaccounting.org/what-are-sundry-expenses/ - Categories: Financial Accounting Concepts --- - Published: 2023-03-09 - Modified: 2024-04-24 - URL: https://fundamentalsofaccounting.org/what-is-prepaid-expense/ - Categories: Financial Accounting Concepts --- - Published: 2023-03-09 - Modified: 2023-04-27 - URL: https://fundamentalsofaccounting.org/what-is-an-ideal-current-ratio/ - Categories: Financial Management --- - Published: 2023-03-08 - Modified: 2023-03-08 - URL: https://fundamentalsofaccounting.org/matching-principle-of-accounting/ - Categories: Financial Accounting Concepts --- - Published: 2023-03-08 - Modified: 2023-03-08 - URL: https://fundamentalsofaccounting.org/trial-balance-and-balance-sheet/ - Categories: Financial Accounting Concepts --- - Published: 2023-03-05 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/different-types-of-dividends/ - Categories: Corporate Accounting --- > Material mix variance is a measure of the deviation in the usage of different materials from standard or expected usage. - Published: 2023-03-01 - Modified: 2025-02-27 - URL: https://fundamentalsofaccounting.org/what-is-material-mix-variance/ - Categories: Cost Accounting --- > Trade discounts are discounts given to customers who purchase goods or services in large quantities or on a regular basis. - Published: 2023-03-01 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/what-is-trade-discount/ - Categories: Financial Accounting Concepts --- - Published: 2023-03-01 - Modified: 2025-03-05 - URL: https://fundamentalsofaccounting.org/what-is-sales-volume-variance-formula/ - Categories: Cost Accounting --- - Published: 2023-02-28 - Modified: 2023-08-30 - URL: https://fundamentalsofaccounting.org/what-is-window-dressing/ - Categories: Corporate Accounting --- - Published: 2023-02-28 - Modified: 2023-02-28 - URL: https://fundamentalsofaccounting.org/what-is-reorder-level-in-cost-accounting/ - Categories: Cost Accounting --- > Del credere commission is a type of commission paid to a buyer's agent or a commission agency in exchange for taking on the buyer's credit risk. - Published: 2023-02-28 - Modified: 2023-07-13 - URL: https://fundamentalsofaccounting.org/what-is-del-credere-commission/ - Categories: Financial Accounting Concepts --- > A mortgage calculator is an interactive financial tool that helps individuals determine a mortgage's monthly payment or EMI. - Published: 2023-02-24 - Modified: 2023-09-10 - URL: https://fundamentalsofaccounting.org/what-is-a-mortgage-calculator/ - Categories: Financial Accounting Concepts --- - Published: 2023-02-20 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/what-do-mean-sundry-debtors-and-sundry-creditors/ - Categories: Financial Accounting Concepts --- > The term "service costing" refers to the method of calculating the cost per unit of service given. It also refers to the price of particular functions. - Published: 2023-02-19 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/explanation-of-service-costing/ - Categories: Cost Accounting --- > Liquidity ratios measure the short-term financial solvency of a business. Here the short term refers to a period of 12 months or lesser. - Published: 2023-01-24 - Modified: 2023-03-21 - URL: https://fundamentalsofaccounting.org/liquidity-ratios-meaning-and-formula/ - Categories: Financial Accounting Concepts --- > The fixed overhead volume variance is also referred to as the production volume variation because this variance is dependent on production volume. - Published: 2022-11-16 - Modified: 2025-04-01 - URL: https://fundamentalsofaccounting.org/what-is-fixed-overhead-volume-variance/ - Categories: Cost Accounting --- > Current liabilities are those liabilities which are due within one year or one operating cycle, whichever is longer, and these are paid out of current assets. - Published: 2022-11-05 - Modified: 2022-11-05 - URL: https://fundamentalsofaccounting.org/what-are-current-liabilities-meaning-and-types/ - Categories: Financial Accounting Concepts --- > The modified internal rate of return (MIRR) is a monetary indicator of an investment's appeal. It is an improved version of IRR method. - Published: 2022-11-01 - Modified: 2022-11-09 - URL: https://fundamentalsofaccounting.org/what-is-the-modified-internal-rate-of-return-mirr/ - Categories: Financial Accounting Concepts --- > Throughput costing is a system based on the fact that most production costs will not vary at the level of the individual unit produced. - Published: 2022-10-17 - Modified: 2025-02-27 - URL: https://fundamentalsofaccounting.org/what-is-throughput-costing/ - Categories: Cost Accounting --- - Published: 2022-10-16 - Modified: 2022-10-16 - URL: https://fundamentalsofaccounting.org/capital-vs-revenue-expenditures/ - Categories: Financial Accounting Concepts --- - Published: 2022-10-16 - Modified: 2023-10-20 - URL: https://fundamentalsofaccounting.org/what-is-trade-discount-in-accounting/ - Categories: Financial Accounting Concepts --- - Published: 2022-10-16 - Modified: 2026-01-06 - URL: https://fundamentalsofaccounting.org/what-does-mean-substance-over-form/ - Categories: Financial Accounting Concepts --- - Published: 2022-10-13 - Modified: 2023-10-10 - URL: https://fundamentalsofaccounting.org/definition-of-revenue-in-accounting/ - Categories: Financial Accounting Concepts --- > Compound interest involves earning interest not only on the initial amount of money or principal but also on any previously accumulated interest. - Published: 2022-10-09 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/what-is-compound-interest-in-interest-calculation/ - Categories: Financial Accounting Concepts --- > To start, let's define simple interest. Simple interest is a type of interest calculation where interest is only earned on the original principal amount. - Published: 2022-10-09 - Modified: 2025-05-20 - URL: https://fundamentalsofaccounting.org/what-is-simple-interest-in-interest-calculation/ - Categories: Financial Accounting Concepts --- > Let's understand the concept of idle time in cost accounting along with types of idle cost. We will also understand how to manage idle time. - Published: 2022-10-05 - Modified: 2025-03-05 - URL: https://fundamentalsofaccounting.org/what-is-idle-time-in-cost-accounting/ - Categories: Cost Accounting --- - Published: 2022-10-05 - Modified: 2023-03-23 - URL: https://fundamentalsofaccounting.org/what-is-labour-turnover-in-cost-accounting/ - Categories: Cost Accounting --- - Published: 2022-10-05 - Modified: 2025-09-12 - URL: https://fundamentalsofaccounting.org/what-is-bin-card-in-cost-accounting/ - Categories: Financial Accounting Concepts --- - Published: 2022-10-04 - Modified: 2023-12-16 - URL: https://fundamentalsofaccounting.org/what-is-the-difference-between-cost-and-financial-accounting/ - Categories: Financial Accounting Concepts --- > Cost centres refer to specific divisions and departments, that are responsible for managing their own expenses and can have costs assigned to them. - Published: 2022-10-02 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/what-is-a-cost-centre-in-costing/ - Categories: Cost Accounting --- > Let's understand in more depth what is abnormal loss, its causes and the accounting treatment of abnormal losses in the books of cost accounting records. - Published: 2022-09-30 - Modified: 2024-04-14 - URL: https://fundamentalsofaccounting.org/what-is-abnormal-loss-in-cost-accounting/ - Categories: Cost Accounting --- - Published: 2022-09-30 - Modified: 2023-10-07 - URL: https://fundamentalsofaccounting.org/what-is-the-owners-capital-in-accounting/ - Categories: Financial Accounting Concepts --- - Published: 2022-09-24 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/what-is-working-capital/ - Categories: Financial Accounting Concepts --- - Published: 2022-09-22 - Modified: 2025-03-04 - URL: https://fundamentalsofaccounting.org/what-is-cost-accounting-definition-and-objectives/ - Categories: Cost Accounting --- > In this blog post, we will explore why internal control is necessary for accounting systems and how these practices can benefit businesses of all sizes. - Published: 2022-09-08 - Modified: 2024-04-08 - URL: https://fundamentalsofaccounting.org/why-internal-control-is-necessary-for-accounting-system/ - Categories: Financial Accounting Concepts --- - Published: 2022-09-08 - Modified: 2025-09-22 - URL: https://fundamentalsofaccounting.org/impact-of-big-data-on-the-accounting/ - Categories: Accounting Tools and Software --- - Published: 2022-08-11 - Modified: 2023-03-19 - URL: https://fundamentalsofaccounting.org/pros-and-cons-of-the-traditional-method-of-calculating-overhead/ - Categories: Cost Accounting --- > Treasury bills, or T-bills, are short-term financial securities issued by both the federal and provincial governments having maturities of up to one year. - Published: 2022-08-08 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/treasury-bills-and-commercial-paper-explained/ - Categories: Financial Management --- > Annuities are financial instruments that guarantee a regular income stream, normally utilized for retirement planning. - Published: 2022-08-08 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/fundamental-of-annuities-meaning-and-types/ - Categories: Financial Management --- > As per revenue recognition principle revenue is recognised in the period in which it is earned. Revenue is not considered earned until a product is sold. - Published: 2022-08-02 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/revenue-recognition-principle/ - Categories: Financial Accounting Concepts --- > an accounting information system (AIS), refers to a computerised accounting system, as computers and software that processes accounting transactions. - Published: 2022-07-29 - Modified: 2025-03-09 - URL: https://fundamentalsofaccounting.org/accounting-information-system/ - Categories: Accounting Tools and Software --- - Published: 2022-07-24 - Modified: 2025-03-09 - URL: https://fundamentalsofaccounting.org/top-10-accounting-software-for-indian-businesses/ - Categories: Accounting Tools and Software --- > Here we have compiled a list of top 10 accounting software. Let's have a look and decide which one works for you in terms of budget and features. - Published: 2022-07-22 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/top-10-accounting-software-cloud-and-desktop/ - Categories: Financial Accounting Concepts --- - Published: 2022-07-21 - Modified: 2024-04-24 - URL: https://fundamentalsofaccounting.org/what-is-the-margin-of-safety/ - Categories: Cost Accounting --- > The labour efficiency variance (LEV) occurs when employees use more or less than standard amount of direct labour hours to produce a product. - Published: 2022-07-20 - Modified: 2026-01-02 - URL: https://fundamentalsofaccounting.org/what-is-labour-efficiency-variance-meaning-and-example/ - Categories: Cost Accounting --- > In business and financial planning, knowing avoidable and unavoidable costs is critical to budgeting, cost control, and profitability analysis. - Published: 2022-07-20 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/what-are-avoidable-and-unavoidable-costs/ - Categories: Financial Management --- > Opportunity costs refer to the benefits lost or profits that are sacrificed while choosing an option over another one that has been chosen. - Published: 2022-07-20 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/what-are-opportunity-costs-with-example/ - Categories: Financial Management --- > Job order costing is a form of accounting that attributes individual costs directly to a completed job rather than to the manufacturing department. - Published: 2022-07-20 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/job-order-costing-versus-process-costing/ - Categories: Cost Accounting --- - Published: 2022-07-20 - Modified: 2025-03-10 - URL: https://fundamentalsofaccounting.org/earnings-per-share-how-to-calculate-earnings-per-share/ - Categories: Financial Management --- - Published: 2022-07-17 - Modified: 2024-04-13 - URL: https://fundamentalsofaccounting.org/what-is-the-time-value-of-money/ - Categories: Financial Management --- > Process costing is that form of operating costing where standardized goods are produced. It is usually utilised in manufacturing entities. - Published: 2022-07-14 - Modified: 2024-09-28 - URL: https://fundamentalsofaccounting.org/what-is-process-costing/ - Categories: Cost Accounting --- > Solved IGNOU Assignment - What are the different types of branches? Explain various methods of keeping branch accounts in the books of Head Office. - Published: 2022-07-14 - Modified: 2023-03-17 - URL: https://fundamentalsofaccounting.org/eco-14-accountancy-ii-solved-ignou/ - Categories: Financial Accounting Concepts --- - Published: 2022-07-13 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/statement-of-retained-earnings/ - Categories: Financial Accounting Concepts --- - Published: 2022-07-13 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/what-is-a-bond-why-are-they-issued/ - Categories: Financial Management --- - Published: 2022-07-13 - Modified: 2022-10-10 - URL: https://fundamentalsofaccounting.org/some-basic-accounting-questions-you-should-be-aware-of/ - Categories: Financial Accounting Concepts --- > An income statement is a financial statement that shows a company's revenues and expenses for a specific period of time. - Published: 2022-07-13 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/what-is-an-income-statement/ - Categories: Financial Accounting Concepts --- > ABC analysis is a widely used inventory management technique that categorizes inventory into three groups: A, B, and C, based on relative importance. - Published: 2022-07-13 - Modified: 2024-11-12 - URL: https://fundamentalsofaccounting.org/what-is-abc-analysis/ - Categories: Cost Accounting --- > In this blog, we will explore the key differences between rights and bonus issue of shares, their advantages, and their effects on shareholders. - Published: 2022-07-13 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/rights-and-bonus-issues-of-shares/ - Categories: Corporate Accounting --- > Fixed costs are expenses that remain constant or unchanged regardless of changes in the level of production or sales within a relevant range. - Published: 2022-07-11 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/what-are-the-fixed-costs/ - Categories: Cost Accounting --- - Published: 2022-07-11 - Modified: 2023-11-23 - URL: https://fundamentalsofaccounting.org/flexible-budget-and-flexible-budget-variance/ - Categories: Cost Accounting --- - Published: 2022-07-10 - Modified: 2024-04-25 - URL: https://fundamentalsofaccounting.org/what-is-the-profitability-index/ - Categories: Corporate Accounting --- - Published: 2022-07-09 - Modified: 2022-07-09 - URL: https://fundamentalsofaccounting.org/what-is-the-current-ratio-and-current-ratio-formula/ - Categories: Financial Accounting Concepts --- - Published: 2022-07-09 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/what-are-contingent-assets-and-contingent-liabilities/ - Categories: Financial Accounting Concepts --- > When a new partner comes into partnership or a partner dies or retires, the profit sharing ratio gets changed and valuation of goodwill needs to be done. - Published: 2022-07-05 - Modified: 2023-10-10 - URL: https://fundamentalsofaccounting.org/change-in-the-profit-sharing-ratio/ - Categories: Financial Accounting Concepts --- - Published: 2022-07-05 - Modified: 2023-10-04 - URL: https://fundamentalsofaccounting.org/meaning-of-debentures/ - Categories: Corporate Accounting --- - Published: 2022-07-01 - Modified: 2023-02-17 - URL: https://fundamentalsofaccounting.org/straight-line-method-of-depreciation-benefits-and-limitations/ - Categories: Financial Accounting Concepts --- > Although to a layman, accounting concepts and conventions may sound similar, there are some fundamental differences between them. - Published: 2022-06-30 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/differences-between-accounting-concepts-and-conventions/ - Categories: Financial Accounting Concepts --- - Published: 2022-06-26 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/what-are-sweat-equity-shares/ - Categories: Corporate Accounting --- > In this post, we'll understand different types of financial statements and the purpose served by each type of statement for their users. - Published: 2022-06-26 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/different-types-of-financial-statements/ - Categories: Corporate Accounting --- - Published: 2022-06-26 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/what-is-performance-budgeting/ - Categories: Cost Accounting --- > Share capital is the total value of all shares issued by a company to its shareholders. It's the funds a company raises by issuing shares to investors. - Published: 2022-06-25 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/what-is-a-share-what-is-share-capital/ - Categories: Corporate Accounting --- - Published: 2022-06-25 - Modified: 2023-11-23 - URL: https://fundamentalsofaccounting.org/procedure-to-issue-shares-for-capital/ - Categories: Corporate Accounting --- - Published: 2022-06-22 - Modified: 2022-11-16 - URL: https://fundamentalsofaccounting.org/meaning-and-need-of-valuation/ - Categories: Corporate Accounting --- - Published: 2022-06-22 - Modified: 2023-12-16 - URL: https://fundamentalsofaccounting.org/benefits-of-business-valuation/ - Categories: Corporate Accounting --- > Financial accounting is helpful for management as it provides them with valuable information. But, there are limitations of financial accounting too. - Published: 2022-05-12 - Modified: 2023-03-28 - URL: https://fundamentalsofaccounting.org/limitations-of-financial-accounting/ - Categories: Financial Accounting Concepts --- - Published: 2022-04-23 - Modified: 2024-04-24 - URL: https://fundamentalsofaccounting.org/what-is-discounted-cash-flow-technique/ - Categories: Financial Management --- - Published: 2022-04-21 - Modified: 2023-07-13 - URL: https://fundamentalsofaccounting.org/bank-reconciliation-statement/ - Categories: Financial Accounting Concepts --- > The Price Earnings ratio is defined as a ration that tells investors how much they're paying for each dollar of a company's earnings. - Published: 2022-04-21 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/what-is-the-price-earnings-ratio/ - Categories: Corporate Accounting --- > The recognition, measurement and disclosure issues in IFRS 16 are covered in further detail in the next section below. - Published: 2022-03-15 - Modified: 2025-03-05 - URL: https://fundamentalsofaccounting.org/ifrs-16-leases-recognition-measurement-and-disclosure/ - Categories: IFRS --- - Published: 2022-03-15 - Modified: 2025-02-12 - URL: https://fundamentalsofaccounting.org/ifrs-17-insurance-contracts/ - Categories: IFRS --- > IFRS 15 outlines how and when an IFRS reporter would recognise revenue and requires such companies to make more meaningful, relevant disclosures. - Published: 2022-03-14 - Modified: 2026-01-11 - URL: https://fundamentalsofaccounting.org/ifrs-15-revenue-from-contracts-with-customers/ - Categories: IFRS --- > IFRS 11 categorizes joint arrangements into two: joint operations and joint ventures, each with a different accounting treatment. - Published: 2022-03-13 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/ifrs-11-joint-arrangements/ - Categories: IFRS --- - Published: 2022-03-13 - Modified: 2023-09-10 - URL: https://fundamentalsofaccounting.org/ifrs-12-disclosure-of-interests-in-other-entities/ - Categories: IFRS --- - Published: 2022-03-13 - Modified: 2025-03-04 - URL: https://fundamentalsofaccounting.org/ifrs-13-fair-value-measurement/ - Categories: IFRS --- - Published: 2022-03-13 - Modified: 2025-03-05 - URL: https://fundamentalsofaccounting.org/ifrs-14-regulatory-deferral-accounts/ - Categories: IFRS --- > In this blog, we will discuss the major concepts of IFRS 10, the process of consolidation, and its effect on financial reporting. - Published: 2022-03-05 - Modified: 2025-03-04 - URL: https://fundamentalsofaccounting.org/ifrs-10-consolidated-financial-statements/ - Categories: IFRS --- - Published: 2022-01-03 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/ifrs-7-financial-instruments-disclosures/ - Categories: IFRS --- > IFRS 8 applies to the separate or individual financial statements of an entity (and to the consolidated financial statements of a group with a parent) - Published: 2022-01-03 - Modified: 2025-03-05 - URL: https://fundamentalsofaccounting.org/ifrs-8-operating-segments/ - Categories: IFRS --- - Published: 2022-01-03 - Modified: 2026-01-11 - URL: https://fundamentalsofaccounting.org/ifrs-9-financial-instruments/ - Categories: IFRS --- > In this blog post, we will explore the differences in the treatment of Goodwill under IFRS and GAAP and the implications for financial reporting. - Published: 2022-01-02 - Modified: 2024-04-08 - URL: https://fundamentalsofaccounting.org/treatment-of-goodwill-ifrs-vs-gaap/ - Categories: Financial Accounting Concepts --- > In this blog post, we'll be outlining 5 helpful tips and strategies with action plans for getting rid of debt as soon as possible. - Published: 2021-11-30 - Modified: 2024-04-15 - URL: https://fundamentalsofaccounting.org/helpful-tips-for-getting-rid-of-debt/ - Categories: Financial Accounting Concepts --- > Mutual fund loads are sales charges or commissions levied on investors when they purchase or sell shares in certain types of mutual funds. - Published: 2021-11-30 - Modified: 2024-04-24 - URL: https://fundamentalsofaccounting.org/what-are-mutual-funds-loads/ - Categories: Financial Accounting Concepts --- - Published: 2021-11-28 - Modified: 2025-03-01 - URL: https://fundamentalsofaccounting.org/what-is-zero-based-budgeting/ - Categories: Financial Accounting Concepts --- > IFRS 5 offers guidance on the classification, measurement, and disclosure of non-current assets held for sale and discontinued operations. - Published: 2021-11-09 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/ifrs-5-non-current-assets-held-for-sale/ - Categories: IFRS --- > IFRS 6 outlines the accounting treatment for the mineral resource exploration and evaluation, for mining, oil, and gas companies to recognize related expenses. - Published: 2021-11-09 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/ifrs-6-evaluation-of-mineral-resources/ - Categories: IFRS --- - Published: 2021-11-09 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/preparing-cash-flow-statement/ - Categories: Financial Accounting Concepts --- - Published: 2021-11-07 - Modified: 2023-09-04 - URL: https://fundamentalsofaccounting.org/what-are-ind-ass-and-when-they-are-applicable/ - Categories: Financial Accounting Concepts --- - Published: 2021-11-05 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/ifrs-4-insurance-contracts/ - Categories: IFRS --- > The marginal cost equation represents the change in total cost resulting from a one-unit change in the quantity of output produced. - Published: 2021-11-05 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/marginal-cost-equation/ - Categories: Cost Accounting --- > An integrated accounting system maintains a single ledger. There is no separate ledger for cost accounts. Entries are not based on double entry. - Published: 2021-10-27 - Modified: 2024-01-13 - URL: https://fundamentalsofaccounting.org/integrated-accounting-system-of-cost-accounting/ - Categories: Cost Accounting --- > In non-integrated accounting system cost and financial accounts are maintained separately and any differences between the both are reconciled. - Published: 2021-10-27 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/non-integrated-accounting-system/ - Categories: Cost Accounting --- > Contract costing, also known as terminal costing is a form of applying the principles of job costing usually adopted by construction companies. - Published: 2021-10-24 - Modified: 2025-03-10 - URL: https://fundamentalsofaccounting.org/contract-costing-explanation/ - Categories: Financial Accounting Concepts --- - Published: 2021-10-24 - Modified: 2023-02-19 - URL: https://fundamentalsofaccounting.org/introduction-to-job-costing/ - Categories: Cost Accounting --- - Published: 2021-10-14 - Modified: 2023-09-10 - URL: https://fundamentalsofaccounting.org/ifrs-3-business-combinations/ - Categories: IFRS --- - Published: 2021-10-03 - Modified: 2023-11-20 - URL: https://fundamentalsofaccounting.org/introduction-to-operating-costing/ - Categories: Cost Accounting --- - Published: 2021-10-03 - Modified: 2024-01-13 - URL: https://fundamentalsofaccounting.org/what-are-zero-coupon-bonds/ - Categories: Corporate Accounting --- - Published: 2021-10-03 - Modified: 2023-11-23 - URL: https://fundamentalsofaccounting.org/the-sarbanes-oxley-act-of-2002/ - Categories: Accounting Regulatory Bodies --- > IFRS 2 requires a company to account for share-based payment transactions in its financial statements, including payments to employees or other parties. - Published: 2021-10-02 - Modified: 2024-01-28 - URL: https://fundamentalsofaccounting.org/ifrs-2-share-based-payment-meaning-and-scope/ - Categories: IFRS --- > A first-time adopter is an organisation that declares explicitly for the first time that its general purpose financial statements comply with IFRSs. - Published: 2021-10-01 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/ifrs-1-first-time-adoption-of-ifrs/ - Categories: IFRS --- - Published: 2021-09-25 - Modified: 2023-11-20 - URL: https://fundamentalsofaccounting.org/ias-1-presentation-of-financial-statements/ - Categories: Financial Accounting Concepts --- - Published: 2021-09-24 - Modified: 2023-10-20 - URL: https://fundamentalsofaccounting.org/cost-classification-according-to-the-accounting-treatment/ - Categories: Cost Accounting --- > Accounting Concepts are the underlying assumptions used to produce a business's financial statements. The term "concept" refers to an idea. - Published: 2021-09-22 - Modified: 2025-03-24 - URL: https://fundamentalsofaccounting.org/12-accounting-concepts-summary/ - Categories: Financial Accounting Concepts - Tags: Accounting Concepts --- > Treasury bills can be held as a cash reserve or a method to earn interest. T-bills are generally offered at a fraction of their face value. - Published: 2021-07-29 - Modified: 2024-03-21 - URL: https://fundamentalsofaccounting.org/introduction-to-treasury-bills/ - Categories: Financial Management --- > Take this comprehensive MCQ quiz to assess your knowledge and understanding of budgeting and appraisal techniques. - Published: 2021-07-28 - Modified: 2023-09-10 - URL: https://fundamentalsofaccounting.org/budgeting-and-appraisal-techniques-quiz/ - Categories: Cost Accounting --- > Relevant costs are those costs that will be incurred as a result of a decision and thus should be considered when making that decision. - Published: 2021-07-26 - Modified: 2023-11-23 - URL: https://fundamentalsofaccounting.org/relevant-cost-meaning-and-types/ - Categories: Cost Accounting --- - Published: 2021-07-05 - Modified: 2023-08-11 - URL: https://fundamentalsofaccounting.org/fixed-overhead-variances/ - Categories: Cost Accounting --- - Published: 2021-07-02 - Modified: 2023-02-17 - URL: https://fundamentalsofaccounting.org/when-changes-in-accounting-policies-are-permitted/ - Categories: Financial Accounting Concepts --- > Accounting is integral to any organization's success, and fundamental accounting principles serve as a foundation for accurate financial reporting. - Published: 2021-06-16 - Modified: 2024-11-17 - URL: https://fundamentalsofaccounting.org/fundamental-accounting-principles/ - Categories: Financial Accounting Concepts --- > Accounting is also vital in making business decisions through providing transparency, accuracy, and conformity with financial laws. - Published: 2021-06-16 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/cost-accounting-gaap-and-ifrs/ - Categories: Cost Accounting --- > Period costs (nonmanufacturing costs) are expenses incurred to maintain business operations but are not required or vital to the manufacturing process. - Published: 2021-06-16 - Modified: 2023-11-20 - URL: https://fundamentalsofaccounting.org/non-manufacturing-costs/ - Categories: Cost Accounting --- > While CVP analysis can be a helpful tool, there are limitations and assumptions that need to be considered when using this tool for decision making. - Published: 2021-06-16 - Modified: 2023-05-15 - URL: https://fundamentalsofaccounting.org/limitations-of-cvp-analysis/ - Categories: Cost Accounting --- > While both are essential in providing financial information, there are some key differences between management accounting and tax accounting - Published: 2021-06-15 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/differences-between-management-accounting-and-tax-accounting/ - Categories: Tax Accounting --- > But who are the various users of financial statements who rely on these accounting records prepared by accountants? Let's talk about them in detail. - Published: 2021-06-15 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/users-of-financial-statements/ - Categories: Financial Accounting Concepts --- > In this article, we have discussed ethical perspectives in the accounting profession using two of the frameworks, utilitarianism and deontology - Published: 2021-06-15 - Modified: 2024-09-28 - URL: https://fundamentalsofaccounting.org/ethical-perspective-in-accounting/ - Categories: Financial Accounting Concepts --- - Published: 2021-05-26 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/what-are-operating-and-financing-lease/ - Categories: Financial Accounting Concepts --- > A sunk cost is that which has been incurred or committed in the past and is, therefore, irrelevant to the decision-making purpose. - Published: 2021-05-22 - Modified: 2025-02-24 - URL: https://fundamentalsofaccounting.org/what-is-a-sunk-cost/ - Categories: Cost Accounting --- > The standard cost is the amount anticipated to be paid for materials or labour. The standard quantity is the estimated amount of materials or labour used. - Published: 2021-05-14 - Modified: 2024-04-14 - URL: https://fundamentalsofaccounting.org/standard-cost-and-standard-costing/ - Categories: Cost Accounting --- - Published: 2021-03-22 - Modified: 2024-04-25 - URL: https://fundamentalsofaccounting.org/definition-of-cost-object/ - Categories: Cost Accounting --- > There are many alternatives to computing the contribution margin. The most basic one is Contribution = Selling Price - Marginal Cost - Published: 2021-03-19 - Modified: 2025-03-23 - URL: https://fundamentalsofaccounting.org/how-to-calculate-contribution-margin/ - Categories: Cost Accounting --- > In this blog, we'll explain perpetual and periodic stock systems, their pros and cons, and what you should know when choosing the right approach. - Published: 2021-03-05 - Modified: 2025-01-19 - URL: https://fundamentalsofaccounting.org/perpetual-and-periodic-stock-systems/ - Categories: Cost Accounting --- > In this article, you will learn more about the formation of IASB, the purposes of IASB (aims of IASB) and various functions of IASB. - Published: 2020-11-29 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/what-are-the-functions-of-iasb/ - Categories: Accounting Regulatory Bodies --- - Published: 2020-11-29 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/markowitz-model-risk-return-optimization/ - Categories: Financial Management --- > In business purchase accounting, the meaning of purchase consideration is the price that is paid for the acquisition of another company. - Published: 2020-11-28 - Modified: 2024-03-21 - URL: https://fundamentalsofaccounting.org/what-is-the-meaning-of-purchase-consideration/ - Categories: Corporate Accounting --- > In this blog, we will discuss the major benefits of self-balancing systems and their impact on enhancing financial management of organisations. - Published: 2020-11-28 - Modified: 2025-02-19 - URL: https://fundamentalsofaccounting.org/what-are-the-benefits-of-self-balancing-systems/ - Categories: Financial Accounting Concepts --- > Cost-Volume-Profit analysis is a financial management tool helping firms understand the relationship between costs, sales volume, and profitability. - Published: 2020-11-28 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/cost-volume-profit-analysis/ - Categories: Financial Accounting Concepts --- - Published: 2020-11-28 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/what-is-the-role-of-auditors/ - Categories: Financial Accounting Concepts --- > These businesses usually opt for spa equipment leasing to upgrade the salons with the latest material and an easy way of arranging the required investment. - Published: 2020-11-27 - Modified: 2024-04-11 - URL: https://fundamentalsofaccounting.org/spa-equipment-leasing/ - Categories: Financial Management --- > Financial ratios are one of the most popular financial analysis tools. It works as a bridge between technical and non-technical users of financial statements. - Published: 2020-11-27 - Modified: 2025-03-04 - URL: https://fundamentalsofaccounting.org/financial-ratios-and-its-importance/ - Categories: Financial Accounting Concepts --- > A trial balance is a bookkeeping or accounting report that lists the balances in each of an organization's general ledger accounts. - Published: 2020-11-26 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/what-is-a-trial-balance/ - Categories: Financial Accounting Concepts --- > The procedural aspects of accounting refers to the process starting from recording entries in journal to preparing the final financial statements. - Published: 2020-11-25 - Modified: 2024-01-07 - URL: https://fundamentalsofaccounting.org/procedural-aspects-of-accounting/ - Categories: Financial Accounting Concepts --- > Many people think that bookkeeping is the same as accounting. It’s not! There are some similarities, but there are many, many differences. - Published: 2020-11-25 - Modified: 2024-01-07 - URL: https://fundamentalsofaccounting.org/differences-between-bookkeeping-and-accounting/ - Categories: Financial Accounting Concepts --- > To understand the meaning of accounting and how the different subfields of accounting fit together, it is essential to know what they are. - Published: 2020-11-25 - Modified: 2024-01-07 - URL: https://fundamentalsofaccounting.org/sub-fields-of-accounting/ - Categories: Financial Accounting Concepts --- > The dual aspect concept is foundation of bookkeeping and based on the principle of double-entry, which states that each debit has a matching credit. - Published: 2020-11-25 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/dual-aspect-concept/ - Categories: Financial Accounting Concepts - Tags: Accounting Concepts --- > Measurement in accounting process refers to determining the value of the transactions so that they are recorded and properly in books of accounts. - Published: 2020-11-25 - Modified: 2026-01-14 - URL: https://fundamentalsofaccounting.org/measurement-in-accounting/ - Categories: Financial Accounting Concepts - Tags: Accounting Concepts --- > Valuation refers to determining the fair value of an entity's assets or liabilities, which is crucial in assessing its overall worth. - Published: 2020-11-25 - Modified: 2023-12-16 - URL: https://fundamentalsofaccounting.org/valuation-principles-in-accounting/ - Categories: Financial Accounting Concepts --- > A cash flow statement is a report that measures and illustrates the company’s ability to generate revenues and meet its financial needs of the company. - Published: 2020-11-25 - Modified: 2022-07-10 - URL: https://fundamentalsofaccounting.org/why-prepare-cash-flow-statement/ - Categories: Financial Accounting Concepts --- > In this post, we will discuss default and repossession, which are two crucial elements of the hire purchase accounting system. Let's understand them in detail. - Published: 2020-11-25 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/default-and-repossession/ - Categories: Financial Accounting Concepts --- > This post will explore what the major elements are that can characterize an effective financial reporting framework and their significance. - Published: 2020-11-24 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/effective-financial-reporting-framework/ - Categories: Financial Accounting Concepts --- > The qualitative characteristics of financial information refer to the attributes that make it useful for decision-making purposes. - Published: 2020-11-24 - Modified: 2023-08-30 - URL: https://fundamentalsofaccounting.org/the-qualitative-characteristics-of-financial-information/ - Categories: Financial Accounting Concepts --- > Here, we have discussed the meaning and the process of Net Present Value (NPV) calculation with an example in a simple manner. - Published: 2020-11-24 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/npv-calculation-example/ - Categories: Financial Management --- > Fundamentals accounting assumptions are the underlying assumptions that are presumed to have been followed while preparing financial statements. - Published: 2020-11-24 - Modified: 2022-11-19 - URL: https://fundamentalsofaccounting.org/fundamental-accounting-assumptions/ - Categories: Financial Accounting Concepts --- > There are three methods of preparing a trial balance: Total method; Balance method, Total and balance method. Let's discuss them in detail: - Published: 2020-11-24 - Modified: 2024-04-11 - URL: https://fundamentalsofaccounting.org/methods-of-preparing-a-trial-balance/ - Categories: Financial Accounting Concepts --- > Before preparing the Profit and Loss Account, we need to close certain accounts such as revenue, expenses and dividend accounts. - Published: 2020-11-24 - Modified: 2025-02-10 - URL: https://fundamentalsofaccounting.org/closing-entries-in-profit-and-loss/ - Categories: Financial Accounting Concepts --- > In this blog, you will learn the meaning, definition and accounting treatment of depreciation in the books of accounts in the correct manner. - Published: 2020-11-24 - Modified: 2025-02-13 - URL: https://fundamentalsofaccounting.org/accounting-treatment-of-depreciation/ - Categories: Financial Accounting Concepts --- - Published: 2020-11-24 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/volkswagen-scandal-accounting-perspective/ - Categories: Accounting Regulatory Bodies --- - Published: 2020-11-24 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/trend-analysis/ - Categories: Financial Management --- > For a new user, it may be difficult to find how to delete a bill in Quickbooks Online. In the bill form, click More at the bottom of the screen. - Published: 2020-11-23 - Modified: 2022-11-05 - URL: https://fundamentalsofaccounting.org/delete-a-bill-in-quickbooks-online/ - Categories: Financial Accounting Concepts --- > The just-in-time inventory system is a method of stock control that involves a systematic approach to keeping accurate records of all the stock and inventory. - Published: 2020-11-23 - Modified: 2023-12-16 - URL: https://fundamentalsofaccounting.org/what-is-just-in-time-inventory-system/ - Categories: Cost Accounting --- > Capital structure ratios are financial assess company's long-term financial stability and the proportion of debt and equity in its financing - Published: 2020-11-23 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/what-are-capital-structure-ratios/ - Categories: Financial Accounting Concepts --- - Published: 2020-11-23 - Modified: 2026-01-06 - URL: https://fundamentalsofaccounting.org/history-accounting-standard-setting-australia/ - Categories: Financial Accounting Concepts --- > The report provides insight into the annual report of BHP Billiton for assessing, analyzing and evaluating the role, responsibilities and duties of the auditor. - Published: 2020-11-23 - Modified: 2025-03-22 - URL: https://fundamentalsofaccounting.org/audit-assurance-and-compliance/ - Categories: Financial Accounting Concepts --- > In the realm of business, the principles of bookkeeping and accounting have played a pivotal role in shaping the way we manage and analyse financial data. - Published: 2020-11-23 - Modified: 2023-07-13 - URL: https://fundamentalsofaccounting.org/development-accounting-thought/ - Categories: Financial Accounting Concepts --- > A chart of accounts is a systematic listing of all accounts employed to classify and record financial transactions in an organization's ledger. - Published: 2020-11-23 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/chart-of-accounts/ - Categories: Financial Accounting Concepts --- - Published: 2020-11-23 - Modified: 2025-03-10 - URL: https://fundamentalsofaccounting.org/ratios-are-mechanical-and-incomplete-comment/ - Categories: Financial Accounting Concepts --- > A perpetual inventory system automatically records and updates the inventory account whenever inventory is sold or purchased. - Published: 2020-11-23 - Modified: 2023-07-13 - URL: https://fundamentalsofaccounting.org/advantages-and-disadvantages-of-perpetual-inventory-system/ - Categories: Financial Accounting Concepts --- > Process value analysis is a systematic approach to identify, analyse and improve the value of specific processes within an organisation. - Published: 2020-11-23 - Modified: 2025-02-24 - URL: https://fundamentalsofaccounting.org/what-is-process-value-analysis/ - Categories: Cost Accounting --- > While preparing the financial statements, you will frequently reference bad and doubtful debts. Both these accounts are charges against the profit. - Published: 2020-11-23 - Modified: 2025-04-15 - URL: https://fundamentalsofaccounting.org/treatment-of-bad-and-doubtful-debts/ - Categories: Financial Accounting Concepts --- > 1. (a) What is a Bank Reconciliation Statement? Explain the causes of disagreement in the balances shown by the Cash Book and Pass Book. (10) - Published: 2020-11-23 - Modified: 2023-06-20 - URL: https://fundamentalsofaccounting.org/cash-book-and-pass-book/ - Categories: Financial Accounting Concepts --- > Question 1. Explain the different systems of maintaining the accounts of a dependent branch. How is profit ascertained under each system? Discuss. - Published: 2020-11-23 - Modified: 2023-03-23 - URL: https://fundamentalsofaccounting.org/accounts-of-a-dependent-branch/ - Categories: Financial Accounting Concepts --- - Published: 2020-11-23 - Modified: 2024-04-05 - URL: https://fundamentalsofaccounting.org/what-is-joint-venture/ - Categories: Financial Accounting Concepts --- > Solvency ratios are financial measurements used to assess a company's ability to meet its long-term obligations and remain financially stable. - Published: 2020-11-22 - Modified: 2024-12-13 - URL: https://fundamentalsofaccounting.org/meaning-and-types-of-solvency-ratios/ - Categories: Corporate Accounting --- > Let's understand in more detail the meaning and functions of both standard costing and budgetary control in cost and management accounting. - Published: 2020-11-22 - Modified: 2024-04-08 - URL: https://fundamentalsofaccounting.org/standard-costing-budgetary-control/ - Categories: Cost Accounting --- > In this post, we are going to discuss the difference between both costing approaches in cost accounting, namely marginal costing and absorption costing. - Published: 2020-11-22 - Modified: 2025-03-01 - URL: https://fundamentalsofaccounting.org/marginal-costing-and-absorption-costing/ - Categories: Cost Accounting --- > Cost tracing is an important part of cost estimation. It allows us to compare costs for a given product between different cost centres. - Published: 2020-11-22 - Modified: 2025-02-26 - URL: https://fundamentalsofaccounting.org/what-is-cost-tracing/ - Categories: Cost Accounting --- > Absorption costing is a method of costing that includes all costs incurred in the production process, including both fixed and variable costs. - Published: 2020-11-22 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/definition-of-absorption-costing/ - Categories: Cost Accounting --- > Absorption costing and marginal costing are two costing approaches that determine what should be the cost of a product. Let's understand their differences. - Published: 2020-11-22 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/difference-absorption-costing-marginal-costing/ - Categories: Cost Accounting --- > The Price Yield Relationship (also known as the price yield equation) refers to the relationship between the price of a security and its yield. - Published: 2020-11-22 - Modified: 2025-04-14 - URL: https://fundamentalsofaccounting.org/price-yield-relationship-concept/ - Categories: Corporate Accounting --- > This blog post digs deep into the definition of overhead in cost accounting, and types of overhead accounts, and their treatments in the books of accounts. - Published: 2020-11-22 - Modified: 2024-11-17 - URL: https://fundamentalsofaccounting.org/definition-of-overhead-in-costing/ - Categories: Cost Accounting --- > An incomplete records system is unscientific, incomplete, inaccurate and unsystematic. It is because incomplete records do not follow double entry rules. - Published: 2020-11-22 - Modified: 2023-10-10 - URL: https://fundamentalsofaccounting.org/incomplete-records-system-is-unscientific/ - Categories: Financial Accounting Concepts --- > This report presents the financial analysis data of Sainsbury for years 2009-2013 shedding light on financial performance and strength of the company. - Published: 2020-11-22 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/financial-analysis-of-sainsburys/ - Categories: Financial Accounting Concepts --- > Activity-based costing is a method that assigns costs to the different activities involved in making a product to allocate a company's funds equitably. - Published: 2020-11-21 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/what-is-activity-based-costing/ - Categories: Cost Accounting --- > We will discuss some important ratios that help the management in making appropriate financial and investment decisions on behalf of shareholders. - Published: 2020-11-21 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/what-are-those-various-ratios-that-are-likely-to-help/ - Categories: Corporate Accounting --- > This blog will discuss the fundamental differences between imputed costs and capitalised costs, and their impact on business decisions and financial statements. - Published: 2020-11-21 - Modified: 2025-02-21 - URL: https://fundamentalsofaccounting.org/imputed-costs-and-capitalised-costs/ - Categories: Cost Accounting --- > In this blog, we will discuss the factors determining the credit policy of firm and and how it impacts the financial position of the business. - Published: 2020-11-21 - Modified: 2025-02-13 - URL: https://fundamentalsofaccounting.org/factors-determining-the-credit-policy/ - Categories: Financial Management --- > The money measurement concept states that a corporation should only report those accounting transactions that can be represented in terms of money. - Published: 2020-11-21 - Modified: 2023-04-01 - URL: https://fundamentalsofaccounting.org/what-is-money-measurement-concept/ - Categories: Financial Management --- > A bond that makes no coupon payments is called a _______ bond. A) Treasury B) municipal C) floating rate D) junk E) zero-coupon - Published: 2020-11-21 - Modified: 2023-02-17 - URL: https://fundamentalsofaccounting.org/mcq-with-answers-about-bonds/ - Categories: Corporate Accounting --- > In this blog post, you will learn about two important types of investments in financing i.e. dependent investments and independent investments. - Published: 2020-11-21 - Modified: 2024-04-24 - URL: https://fundamentalsofaccounting.org/dependent-and-independent-investments/ - Categories: Corporate Accounting --- > The Internal Rate of Return (IRR) is one of the most common methods for investment appraisal. IRR is also known as the Internal Capitalization Rate. - Published: 2020-11-21 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/internal-rate-of-return-method/ - Categories: Corporate Accounting --- - Published: 2020-11-21 - Modified: 2022-10-15 - URL: https://fundamentalsofaccounting.org/accounts-for-not-for-ngo/ - Categories: Financial Accounting Concepts --- > Financial reconstruction refers to the process of revamping or restructuring a company's financial situation to improve its viability and profitability. - Published: 2020-11-21 - Modified: 2025-02-24 - URL: https://fundamentalsofaccounting.org/what-is-financial-reconstructing/ - Categories: Corporate Accounting --- - Published: 2020-11-21 - Modified: 2025-09-22 - URL: https://fundamentalsofaccounting.org/evaluation-transfer-pricing-policies/ - Categories: Cost Accounting --- > Ad valorem is a Latin phrase meaning "according to value." In essence, it is used to describe a tax levied based on the value of the item being taxed. - Published: 2020-11-21 - Modified: 2024-04-05 - URL: https://fundamentalsofaccounting.org/what-is-the-meaning-of-the-ad-valorem/ - Categories: Tax Accounting --- > Unit costs are computed by dividing some amount of total costs (the numerator) by the related number of units (the denominator). - Published: 2020-11-20 - Modified: 2023-02-27 - URL: https://fundamentalsofaccounting.org/what-is-unit-cost/ - Categories: Cost Accounting --- > Contribution margin vs gross margin; this is a matter of great confusion among many accounting students. Most of them think they both are the same. - Published: 2020-11-20 - Modified: 2023-02-17 - URL: https://fundamentalsofaccounting.org/gross-margin-contribution-margin/ - Categories: Cost Accounting --- > IFRS are internationally accepted accounting standards that companies around the world need to follow in preparing their accounts. - Published: 2020-11-20 - Modified: 2023-08-20 - URL: https://fundamentalsofaccounting.org/ifrs-affect-accounting-australia/ - Categories: Accounting Regulatory Bodies --- - Published: 2020-11-20 - Modified: 2025-03-30 - URL: https://fundamentalsofaccounting.org/factors-determining-dividend-policy/ - Categories: Corporate Accounting --- > An American Depositary Receipt represents shares in a foreign company traded on U.S. exchanges, for instance, the New York Stock Exchange. - Published: 2020-11-20 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/what-are-american-depositary-receipts-adr/ - Categories: Financial Management --- > Forensic accountants are in high demand because they are essential to ensure that the financial records of a company are accurate and up to date. - Published: 2020-11-20 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/forensic-accountants-in-demand/ - Categories: Forensic Accounting --- - Published: 2020-11-20 - Modified: 2025-08-29 - URL: https://fundamentalsofaccounting.org/importance-of-forensic-accounting/ - Categories: Forensic Accounting --- - Published: 2020-11-20 - Modified: 2025-08-29 - URL: https://fundamentalsofaccounting.org/benefits-of-forensic-accounting/ - Categories: Forensic Accounting --- > A hedge fund is typically structured as limited liability partnerships, with the general partner serving as a portfolio manager to investors. - Published: 2020-11-20 - Modified: 2023-07-11 - URL: https://fundamentalsofaccounting.org/hedge-funds-meaning/ - Categories: Financial Management --- > In this blog, we’ll explore the must-have features of business valuation software and explain how these functionalities can enhance decision-making. - Published: 2020-11-20 - Modified: 2025-03-09 - URL: https://fundamentalsofaccounting.org/best-business-valuation-software/ - Categories: Accounting Tools and Software --- - Published: 2020-11-20 - Modified: 2026-01-06 - URL: https://fundamentalsofaccounting.org/segment-contribution-margin/ - Categories: Cost Accounting --- > The strategic cost management tool "target costing" incorporates customer-centric pricing principles instead of traditional firm-oriented pricing. - Published: 2020-11-19 - Modified: 2024-09-13 - URL: https://fundamentalsofaccounting.org/target-costing-meaning/ - Categories: Cost Accounting --- - Published: 2020-11-19 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/traditional-methods-vs-target-costing/ - Categories: Cost Accounting --- > The objectives of target costing, then, are twofold: 1) To ensure that products are priced competitively in order to maximize sales; and - Published: 2020-11-19 - Modified: 2023-07-07 - URL: https://fundamentalsofaccounting.org/objectives-of-target-costing/ - Categories: Cost Accounting --- > A method of overhead absorption in cost accounting is a method of allocating expenses and gains to cost centres within a business. - Published: 2020-11-19 - Modified: 2022-10-13 - URL: https://fundamentalsofaccounting.org/method-absorbing-overhead-various-products-jobs/ - Categories: Cost Accounting --- > Target Costing and Lifecycle Costing are two important tools that can be used to manage and control costs throughout the product development process. - Published: 2020-11-19 - Modified: 2025-02-26 - URL: https://fundamentalsofaccounting.org/target-costing-lifecycle-costing/ - Categories: Cost Accounting --- > A traditional costing system is an accounting approach used to assess the cost of producing products in order to generate a profit. - Published: 2020-11-19 - Modified: 2024-05-21 - URL: https://fundamentalsofaccounting.org/flaws-traditional-costing-system/ - Categories: Cost Accounting --- > Relevant costs are those expected future costs that vary under various alternatives. These are the costs that are affected due to decision-making. - Published: 2020-11-19 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/relevant-costs-meaning-and-pitfalls/ - Categories: Cost Accounting --- > In this blog post, we will discuss the similarities and contrasts between revenue recognition guidelines under IFRS and GAAP. - Published: 2020-11-19 - Modified: 2025-02-01 - URL: https://fundamentalsofaccounting.org/ifrs-revenue-recognition/ - Categories: IFRS --- > A single reporting framework is one of the main benefits of adopting IFRS while it has practical problems such as converging from local frameworks. - Published: 2020-11-19 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/pros-and-cons-of-adopting-ifrs/ - Categories: IFRS --- - Published: 2020-11-19 - Modified: 2025-03-05 - URL: https://fundamentalsofaccounting.org/role-purpose-international-accounting-standards/ - Categories: Accounting Regulatory Bodies --- > Some of the main types of cost audit are statutory cost audit, government-ordered cost audit, and cost audit directed by trade association. - Published: 2020-10-30 - Modified: 2025-02-24 - URL: https://fundamentalsofaccounting.org/what-are-the-types-of-cost-audit/ - Categories: Cost Accounting --- > Let's understand what are overhead costs and what is the importance of overhead costs or expenses in running the business operations smoothly. - Published: 2020-10-30 - Modified: 2024-04-24 - URL: https://fundamentalsofaccounting.org/what-is-the-importance-of-overhead-costs/ - Categories: Cost Accounting --- > The accounting rate of return measures the profit generated compared to the initial investment. This is also a famous method after NPV and IRR. - Published: 2020-10-27 - Modified: 2024-05-05 - URL: https://fundamentalsofaccounting.org/accounting-rate-of-return/ - Categories: Financial Management --- > In this article, we will discuss in great detail what is a cost audit, its objectives and why it is important for manufacturing entities. - Published: 2020-09-30 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/meaning-and-definition-of-cost-audit/ - Categories: Cost Accounting --- - Published: 2020-09-27 - Modified: 2025-02-06 - URL: https://fundamentalsofaccounting.org/limited-liability-companies/ - Categories: Corporate Accounting --- > In this post, we will understand the concept, formula and advantages of absorption costing and their application in cost accounting. - Published: 2020-08-30 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/advantages-of-absorption-costing/ - Categories: Cost Accounting --- - Published: 2020-08-28 - Modified: 2026-01-11 - URL: https://fundamentalsofaccounting.org/gaap-and-ifrs-the-effects-of-globalization/ - Categories: IFRS --- > In this blog post, we'll shed light on the most common equity valuation methods, providing you with a clear understanding of how companies are assessed. - Published: 2020-07-29 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/what-are-various-equity-valuation-methods/ - Categories: Financial Management --- > Ratio analysis is one of the most useful techniques for the analysis or interpretation of a financial statement and performance of a company. - Published: 2020-07-29 - Modified: 2025-02-17 - URL: https://fundamentalsofaccounting.org/ratio-analysis-meaning-and-examples/ - Categories: Cost Accounting --- > Direct labour cost variance refers to the standard cost of direct labour for the actual number of units produced less the actual cost. - Published: 2020-07-28 - Modified: 2023-08-08 - URL: https://fundamentalsofaccounting.org/what-is-direct-labour-cost-variance/ - Categories: Cost Accounting --- - Published: 2020-07-27 - Modified: 2022-07-05 - URL: https://fundamentalsofaccounting.org/partnership-accounting-preparing-appropriation-account/ - Categories: Financial Accounting Concepts --- - Published: 2020-06-30 - Modified: 2023-07-11 - URL: https://fundamentalsofaccounting.org/main-advantages-of-cost-audit/ - Categories: Cost Accounting --- > Direct labour is the cost of the labour used to produce a product or service. It includes all wages, salaries, and employee compensation. - Published: 2020-06-30 - Modified: 2025-02-24 - URL: https://fundamentalsofaccounting.org/what-is-direct-labour-in-costing/ - Categories: Cost Accounting --- - Published: 2020-06-29 - Modified: 2025-09-05 - URL: https://fundamentalsofaccounting.org/hedge-fund-strategies/ - Categories: Financial Management --- - Published: 2020-06-28 - Modified: 2026-01-02 - URL: https://fundamentalsofaccounting.org/why-do-variances-arise-in-costing/ - Categories: Cost Accounting --- > The payback period method is one of the most basic methods of project evaluation. Usually, it is calculated without considering time value of money. - Published: 2020-06-27 - Modified: 2025-03-08 - URL: https://fundamentalsofaccounting.org/the-payback-period-method/ - Categories: Financial Management --- - Published: 2020-06-27 - Modified: 2024-04-24 - URL: https://fundamentalsofaccounting.org/accounts-for-manufacturing-businesses/ - Categories: Financial Accounting Concepts --- - Published: 2020-06-24 - Modified: 2025-04-01 - URL: https://fundamentalsofaccounting.org/how-to-prepare-final-accounts/ - Categories: Financial Accounting Concepts --- - Published: 2020-06-21 - Modified: 2025-03-09 - URL: https://fundamentalsofaccounting.org/erp-implementation-guidance/ - Categories: Accounting Tools and Software --- > Material Cost Variance is the difference between the standard cost of the material allowed for the output and the actual cost of the material used. - Published: 2020-05-30 - Modified: 2025-03-05 - URL: https://fundamentalsofaccounting.org/what-is-material-cost-variance/ - Categories: Cost Accounting --- - Published: 2020-05-30 - Modified: 2023-11-21 - URL: https://fundamentalsofaccounting.org/difference-between-future-and-options/ - Categories: Financial Management --- - Published: 2020-05-28 - Modified: 2024-03-21 - URL: https://fundamentalsofaccounting.org/choosing-the-best-accounting-books/ - Categories: Financial Accounting Concepts --- > In cost accounting, variance analysis is a technique for ascertaining the causes of differences in the budgeted and actual outputs. - Published: 2020-05-28 - Modified: 2024-04-13 - URL: https://fundamentalsofaccounting.org/what-is-variance-analysis/ - Categories: Cost Accounting --- - Published: 2020-05-27 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/net-present-value-investment-appraisal-tool/ - Categories: Financial Accounting Concepts --- > Accounting standards are a set of principles, rules and guidelines that companies must follow when preparing and presenting financial statements. - Published: 2020-05-25 - Modified: 2025-02-19 - URL: https://fundamentalsofaccounting.org/what-are-accounting-standards/ - Categories: Financial Accounting Concepts --- - Published: 2020-05-24 - Modified: 2023-02-18 - URL: https://fundamentalsofaccounting.org/the-concept-of-accruals-and-prepayments/ - Categories: Financial Accounting Concepts --- - Published: 2020-05-20 - Modified: 2026-01-06 - URL: https://fundamentalsofaccounting.org/financial-performance-measurement/ - Categories: Financial Management --- - Published: 2020-04-30 - Modified: 2024-04-24 - URL: https://fundamentalsofaccounting.org/what-is-a-budget-manual/ - Categories: Cost Accounting --- - Published: 2020-04-30 - Modified: 2023-11-21 - URL: https://fundamentalsofaccounting.org/limitations-absorption-costing/ - Categories: Cost Accounting --- - Published: 2020-04-28 - Modified: 2024-01-29 - URL: https://fundamentalsofaccounting.org/direct-material-cost-variances/ - Categories: Cost Accounting --- - Published: 2020-04-25 - Modified: 2025-03-05 - URL: https://fundamentalsofaccounting.org/what-are-accounting-estimates/ - Categories: Financial Accounting Concepts --- > The accounting process is a methodical procedure that organisations employ to account, analyze, and interpret business transactions. - Published: 2020-04-25 - Modified: 2025-02-27 - URL: https://fundamentalsofaccounting.org/what-is-the-accounting-process/ - Categories: Financial Accounting Concepts --- > Unsystematic risk is the risk of loss that cannot be diversified away through investment in any of the securities in a broadly diversified portfolio. - Published: 2020-04-22 - Modified: 2025-02-24 - URL: https://fundamentalsofaccounting.org/systematic-unsystematic-risks/ - Categories: Financial Management --- > In this article, we will discuss concepts of cost and costing in management accounting to understand their implications in solving problems. - Published: 2020-04-21 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/basics-of-cost-and-costing/ - Categories: Cost Accounting --- - Published: 2020-03-29 - Modified: 2024-05-22 - URL: https://fundamentalsofaccounting.org/what-is-momentum-analysis/ - Categories: Financial Management --- > In this post, we will explain how to calculate liquidity ratios, their importance, and what they reveal about a business's financial position. - Published: 2020-03-29 - Modified: 2025-02-16 - URL: https://fundamentalsofaccounting.org/liquidity-ratios-meaning-types-and-calculation/ - Categories: Cost Accounting --- - Published: 2020-03-27 - Modified: 2023-08-11 - URL: https://fundamentalsofaccounting.org/perpetual-inventory-system/ - Categories: Cost Accounting --- > In this post, we will learn the importance of Trading Account, its structure, and how it helps in evaluating a company’s financial health. - Published: 2020-03-26 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/what-is-the-importance-of-trading-account/ - Categories: Financial Accounting Concepts --- - Published: 2020-03-26 - Modified: 2025-03-19 - URL: https://fundamentalsofaccounting.org/closing-entries-trading-account/ - Categories: Financial Accounting Concepts --- > Triple Bottom Line Reporting (TBLR) is a new process that focuses on reporting, assessing and improving organisational performance for sustainability. - Published: 2020-03-24 - Modified: 2024-05-05 - URL: https://fundamentalsofaccounting.org/what-is-triple-bottomline-reporting/ - Categories: Financial Accounting Concepts --- > This article will discuss various critical factors governing dividend decisions and how they impact companies and shareholders. - Published: 2020-02-29 - Modified: 2024-09-28 - URL: https://fundamentalsofaccounting.org/factors-governing-dividend-decision/ - Categories: Financial Management --- - Published: 2020-02-29 - Modified: 2023-10-27 - URL: https://fundamentalsofaccounting.org/treasury-stock-accounting-treatment/ - Categories: Financial Management --- > Classification of accounts is one of the most important part of bookkeeping which facilitates the organization of financial data for reporting and analysis. - Published: 2020-02-26 - Modified: 2025-02-10 - URL: https://fundamentalsofaccounting.org/classification-of-accounts/ - Categories: Financial Accounting Concepts --- - Published: 2020-02-26 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/profit-and-loss-account/ - Categories: Financial Accounting Concepts --- > A coverage ratio is a common metric used in financial analysis that determines how much of a company's assets are covered by its liabilities. - Published: 2020-02-24 - Modified: 2025-02-18 - URL: https://fundamentalsofaccounting.org/coverage-ratios-meaning/ - Categories: Financial Accounting Concepts --- - Published: 2020-01-22 - Modified: 2023-09-25 - URL: https://fundamentalsofaccounting.org/list-of-indian-accounting-standards/ - Categories: IND ASs --- > IFRS (International Financial Reporting Standards) is a set of accounting principles that are used globally for financial reporting. - Published: 2019-11-30 - Modified: 2025-02-24 - URL: https://fundamentalsofaccounting.org/why-should-india-adopt-ifrs/ - Categories: IFRS --- - Published: 2019-11-27 - Modified: 2024-01-04 - URL: https://fundamentalsofaccounting.org/financial-statement-analysis/ - Categories: Financial Accounting Concepts --- > There are so many tow trucks available on the market. Therefore, it is challenging for business owners to select the types that will greatly impact the fleet. - Published: 2019-11-08 - Modified: 2023-08-30 - URL: https://fundamentalsofaccounting.org/buying-used-tow-trucks/ - Categories: Financial Management --- > The main functions of FASB include to Maintain the standards to reflect any changes in the method of preparing the financial statements. - Published: 2019-09-25 - Modified: 2024-06-12 - URL: https://fundamentalsofaccounting.org/objectives-and-functions-of-fasb/ - Categories: Accounting Regulatory Bodies --- - Published: 2019-08-22 - Modified: 2026-01-12 - URL: https://fundamentalsofaccounting.org/the-enron-accounting-scandal/ - Categories: Corporate Accounting --- > Consignment refers to selling the goods manufactured by a company through an agent. In this arrangement, there are two parties consigner and consignee. - Published: 2019-06-27 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/meaning-of-consignment-accounting/ - Categories: Financial Accounting Concepts --- > There are five methods of valuation of Goodwill. However, average maintainable profit method and super profit method are most popular ones. - Published: 2019-05-26 - Modified: 2025-02-25 - URL: https://fundamentalsofaccounting.org/methods-of-valuation-of-goodwill/ - Categories: Financial Accounting Concepts --- > A direct expense is an expense that can be traced back to a specific cost centre. Direct expenses are also known as chargeable expenses. - Published: 2018-11-29 - Modified: 2025-02-24 - URL: https://fundamentalsofaccounting.org/what-are-direct-expenses/ - Categories: Cost Accounting --- > Direct Materials are those materials that can be identified in the product, measured and directly charged to the product to the product. - Published: 2018-10-29 - Modified: 2025-04-10 - URL: https://fundamentalsofaccounting.org/direct-materials-meaning-and-examples/ - Categories: Cost Accounting --- > In order to make it easier to buy and sell securities, the primary market and secondary market are two crucial elements of the financial ecosystem. - Published: 2018-10-23 - Modified: 2023-11-23 - URL: https://fundamentalsofaccounting.org/primary-market-and-secondary-market/ - Categories: Financial Management --- > The treatment of goodwill in a business purchase is a crucial aspect that can impact the overall financial picture and success of the transaction. - Published: 2018-09-28 - Modified: 2023-12-12 - URL: https://fundamentalsofaccounting.org/treatment-of-goodwill-in-a-business-purchase/ - Categories: Corporate Accounting --- > Systematic risk refers to the variability of return of portfolio associated with change occur in the economic, political and social system. - Published: 2018-08-26 - Modified: 2024-11-12 - URL: https://fundamentalsofaccounting.org/what-do-you-mean-by-systematic-risk/ - Categories: Financial Accounting Concepts --- - Published: 2018-07-25 - Modified: 2025-03-24 - URL: https://fundamentalsofaccounting.org/principles-concepts-conventions/ - Categories: Financial Accounting Concepts - Tags: Accounting Concepts --- - Published: 2017-12-26 - Modified: 2025-11-12 - URL: https://fundamentalsofaccounting.org/changes-in-accounting-policies/ - Categories: Financial Accounting Concepts --- - Published: 2017-11-25 - Modified: 2025-03-24 - URL: https://fundamentalsofaccounting.org/accrual-concept-in-the-financial-accounting/ - Categories: Financial Accounting Concepts - Tags: Accounting Concepts --- > In this article, you will learn the differences between IFRS and GAAP, their implications in international accounting and financial reporting practices. - Published: 2017-10-29 - Modified: 2025-02-19 - URL: https://fundamentalsofaccounting.org/differences-between-ifrs-and-gaaps/ - Categories: IFRS --- > Because two different factors are affecting the total sales variance, they must be divided into the following 2 types of sales variances: - Published: 2017-09-28 - Modified: 2025-03-05 - URL: https://fundamentalsofaccounting.org/types-of-sales-variances/ - Categories: Cost Accounting --- > The budget period is the period for recording costs and income figures for a set of accounts. Simply, it is the period that the budget is prepared for. - Published: 2017-08-07 - Modified: 2025-02-19 - URL: https://fundamentalsofaccounting.org/what-is-the-budget-period-in-accounting/ - Categories: Cost Accounting --- > Let's explore what is the ledger and the purposes it serves in the bookkeeping and accounting functions and what are rules of posting to/from ledger. - Published: 2017-07-26 - Modified: 2025-04-15 - URL: https://fundamentalsofaccounting.org/what-is-the-ledger/ - Categories: Financial Accounting Concepts --- - Published: 2017-06-27 - Modified: 2025-11-12 - URL: https://fundamentalsofaccounting.org/jalani-distributors-sold-three-light/ - Categories: Financial Accounting Concepts --- > The purpose of this article is to make you aware of 'fundamental analysis and technical technical analysis' in the context of financial markets. - Published: 2016-07-20 - Modified: 2025-03-09 - URL: https://fundamentalsofaccounting.org/fundamental-technical-analysis/ - Categories: Financial Management --- ---