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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 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 encourag
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Tax Accounting
Differences between management and tax accounting
Financial accounting and reporting are only part of the broad field of accounting. Other significant kinds of accounting include management accounting and tax a
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Cost Accounting
What is a Cost Centre in Costing? Purpose and Benefits
Cost centres refer to specific divisions and departments, that are responsible for managing their own expenses and can have costs assigned to them. In cost acco
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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 Management
What are the Opportunity Costs? Meaning and Examples
Opportunity costs refer to the benefits lost or profits that are sacrificed while choosing an option over another one that has been chosen. When choosing betwee
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Cost Accounting
What is the Budget Period in Accounting?
A budget is a quantitative future plan that helps an organisation coordinate its actions. Large organisations all have a budget. Numerous companies produce deta
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Financial Accounting Concepts
What are Accounting Standards? | Benefits and Limitations
Accounting standards are a set of principles, rules and guidelines that companies must follow when preparing and presenting financial statements. In simple term
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Financial Accounting Concepts
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 fictitious asset. The term “fictiti
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Financial Accounting Concepts
5 Types of Assets That Are Written Off At Some Point of Time
Asset write-offs are an integral part of financial accounting for businesses and organizations. They involve recognising and removing assets from the balance sh