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 […]
Meaning and 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. For instance, maintenance, personnel, and canteen. These are sometimes referred to as service departments, centres, or functions. Service costing is a way to calculate the cost of services. After […]
What are 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. Investors typically use liquidity ratios to determine the worth of a company’s assets. If the ratio is high, it means that there are more liquid assets available for quick conversion to cash […]
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. The volume variance quantifies the difference between two output levels in monetary terms. The first production level represents the period’s actual output. The second production level serves as the denominator in the budgeted […]
What are Current Liabilities? Meaning and Types
Liabilities are the obligations to pay money, render services, or deliver goods at a later date as a result of a previous transaction. This definition covers all liabilities covered in earlier chapters as well as any new liabilities. Liabilities are separated into current liabilities and long-term liabilities on the balance sheet. Meaning of Current Liabilities […]