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Financial Accounting Concepts
What is a Chart of Accounts | Meaning and Purpose
A chart of accounts is a systematic listing of all accounts employed to classify and record financial transactions in an organization’s ledger. It is a fi
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Corporate Accounting
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 differ in terms of rights, dividend
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Corporate Accounting
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 as stocks, bonds, and other financial inst
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IFRS
IFRS 16 – Leases (Recognition, Measurement and Disclosure)
The International Accounting Standards Board introduced IFRS 16 in 2019, which marked an enormous change in the accounting treatment of leases. Earlier, a compa
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Financial Accounting Concepts
What are accounting estimates in financial accounting?
We have learned how to measure a transaction that has already occurred or taken place and for which either some value /money has been paid, or some valuation pr
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Cost Accounting
What is Idle Time in Cost Accounting
In cost accounting, idle time is when a production resource is available but not used. Idle time can occur for several reasons, such as when a production line i
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Cost Accounting
What are various types of sales variances in cost accounting
Sales variance can be defined as the difference between the standard or expected revenue and the actual revenue. It is different from cost variances because cos
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Cost Accounting
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 from their original
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Cost Accounting
What is Material Cost Variance in Costing?
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. ICMS has def
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Cost Accounting
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 be ordered at one time. EOQ takes