Difference between trial balance and balance sheet
The balance sheet and trial balance are two of the most important financial statements in accounting. While they both play crucial roles in presenting a company’s financial position, they differ in scope and purpose. In this article, we’ll examine the differences between the balance sheet and trial balance. The Balance Sheet A balance sheet, also […]
What Are the Different Types of Dividends
Dividends are a key way for companies to distribute profits to their shareholders. When a company generates earnings, it has a few options for what to do. It can reinvest them in the business, pay down debt, or distribute them to shareholders. Dividends are one-way companies reward shareholders for investing in their business. There are […]
What is Material Mix Variance? Meaning and Treatment
Material mix variance is a measure of the deviation in the usage of different materials from standard or expected usage. In other words, material Mix Variance measures the difference between the cost of the standard proportion of materials and the actual proportion of materials consumed in the production process during a period Material Mix Variance […]
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 expectations. In this blog post, we will explain sales volume variance, why it is important, and how it is calculated. What is Sales Volume Variance? Sales volume variance measures the difference between […]
What is Trade Discount? Treatment of Trade Discounts
Trade discounts are discounts given to customers who purchase goods or services in large quantities or on a regular basis. These discounts are meant to encourage customers to buy more from the seller, and they are often a percentage of the list price. In this blog post, we will explain what trade discounts are and […]
What is Window Dressing of Financial Statements?
The window dressing of financial statements is a term that refers to the manipulation of financial information in order to make a company appear more financially stable than it actually is. This practice is unethical and can damage investors, creditors, and other stakeholders. In this article, we will define what window dressing is, provide examples […]
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. It is, in essence, a commission given to an agent in exchange for securing the buyer’s payment. This kind of compensation is often paid by the seller to the […]
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 in cost accounting is the reorder level, which is when a business needs to reorder inventory to maintain a sufficient stock level. This blog post will discuss the reorder level, how it is calculated, and […]
What is a mortgage calculator?
Mortgages are a prevalent method for financing properties. A mortgage is a loan used to purchase a home, and it is typically repaid over a 15- to 30-year term. A mortgage calculator is an interactive financial tool that helps individuals determine a mortgage’s monthly payment or EMI. The calculator takes into account the mortgage amount, […]
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 that a company owes to its suppliers and clients respectively. Business owners and managers should be aware of these words and how they affect their organisation’s financial statements. What are Sundry Debtors? Sundry debtors are […]