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Financial Accounting Concepts
Methods of Preparing a Trial Balance
A trial balance lists all debits and credits in your accounting system. The total of debits must equal the total of credits. It’s an excellent tool for und
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Financial Management
Net Present Value (NPV) Calculation Example
The NPV method is based on the time value of money principle, which states that money is worth more today than it will be in the future. This is because mo
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Financial Accounting Concepts
What are the Fundamental Accounting Assumptions?
Fundamentals accounting assumptions are the underlying assumptions that are presumed to have been followed while preparing financial statements. There are
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Financial Accounting Concepts
Trend Analysis – Meaning and Example
Trend analysis is the process of analyzing the financial statements by the computing trend of series of information. With the help of trend analysis tool,
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Financial Accounting Concepts
Meaning and Accounting Treatment of Depreciation
Depreciation is the reduction in the value of an asset over time due to wear and tear, obsolescence, or other factors. Generally, the term ‘depreciation
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Financial Accounting Concepts
The Qualitative Characteristics of Financial Information
The qualitative characteristics of financial information refer to the attributes that make it useful for decision-making purposes. These characteristics in
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Financial Accounting Concepts
Characteristics of an Effective Financial Reporting Framework
Any effective financial reporting system needs to be a coherent one. Such frameworks have several characteristics: Transparency A framework should enhance
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Financial Accounting Concepts
What is a joint venture? | Methods of Recording Transactions
What is joint venture ? Explain various methods of recording the joint venture transaction. Give entries in each case Joint Venture (JV) is a temporary for
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Cost Accounting
What is Just-in-Time Inventory System
Just-in-Time Inventory System JIT inventory system is a method of stock control that involves a systematic approach to keeping accurate records of all the
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Financial Accounting Concepts
Causes of disagreement in the Cash Book and Pass Book
1. (a) What is a Bank Reconciliation Statement? Explain the causes of disagreement in the balances shown by the Cash Book and Pass Book. (10) Solution: BAN
