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Cost Accounting
Meaning, Benefits and Drawbacks of ABC Analysis
ABC analysis is a widely used inventory management technique that categorizes inventory into three groups: A, B, and C, based on relative importance. This metho
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Financial Accounting Concepts
What is an Income Statement? Components and Elements
An income statement is a financial statement that shows a company’s revenues and expenses for a specific period of time. The Income Statement analyses the
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Financial Accounting Concepts
What is the Statement of Retained Earnings?
Statement of Retained Earnings The Statement of Retained Earnings reconciles the Retained Earnings account from the beginning to the finish of the fiscal year.
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Financial Accounting Concepts
Some Basic Accounting Questions You Should Be Aware of
General Accounting Concepts If you are an accounting student, these questions must be helpful in ensuring that you know basic accounting concepts. 1. In busines
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Financial Management
What is a Bond? Why are they issued?
A bond is a financial instrument representing a loan by an investor to a borrower. The borrower may be a corporation, government, or any other entity. When you
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Cost Accounting
What are Flexible Budget and Flexible Budget Variance?
A budget is a future-oriented strategy. Therefore, budgets are planning tools, and they are often produced prior to the beginning of the budgeted period. Howeve
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Cost Accounting
What are the Fixed Costs in Management Accounting?
Fixed costs are expenses that remain constant or unchanged regardless of changes in the level of production or sales within a relevant range. They are often tim
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Corporate Accounting
What is the Profitability Index?
The Profitability Index is simply the profitability of an investment expressed as a percentage of the total return of the investment. The profitability index as
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Financial Accounting Concepts
What are Contingent Assets and Contingent Liabilities?
Contingent Assets Contingent assets are those in which the likelihood of economic profit depends completely on future occurrences that cannot be controlled by t
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Financial Accounting Concepts
What is the Current Ratio and Current Ratio Formula?
What is the Current Ratio? The current ratio is a measure of the short-term financial liquidity of a business. It is the ratio of current assets to current liab