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Financial Accounting Concepts
What is Discounted Payback Period Method?
The discounted payback period method is a tool for investment appraisal that is used to determine how long it will take to recoup the project’s initial in
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Financial Accounting Concepts
What is a Suspense Account in Financial Accounting?
A suspense account is a general ledger account that consists of certain transactions that cannot be immediately categorised under correct accounts. The correctn
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Financial Accounting Concepts
What is an Adjusted Trial Balance?
After adjusting entries are posted to the ledger and adjusting entries are recorded, an adjusted trial balance is compiled. This is the second trial balance pre
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Financial Accounting Concepts
What is Petty Cash in Accounting? Meaning and Purpose
Every business, regardless of size, has various expenses that need to be covered daily. These expenses are often small and frequently occur, such as office supp
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Financial Accounting Concepts
What is Credit Risk?
Credit risk is a term used to describe the potential financial loss a lender may experience when a borrower fails to repay a loan or credit. In other words, it
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Financial Accounting Concepts
Top 5 Career Options for Accounting Graduates
If you’re an accounting graduate, congratulations on completing a rigorous academic program that has prepared you for a bright future in the business worl
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Financial Accounting Concepts
What is Business Entity Concept?
The business entity concept is a fundamental accounting principle that defines a business as a separate economic entity from its owners. This principle is cruci
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Financial Accounting Concepts
The Impact of Inventory Control on Business Profitability
Efficient inventory control is key to keeping a profitable and smooth-running business. Strategic stock levels management prevents businesses from wastage, lowe
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Corporate Accounting
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 assets. The primary purpos
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Financial Management
What is a 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. It is a tool used by bu