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Financial Accounting Concepts
Closing entries to pass before preparing a Profit and Loss Account
Closing entries in accounting refer to the many entries that are made after an accounting year to eliminate the balances of all temporary accounts established t
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Corporate Accounting
Top 5 Theories of Dividend Decision
Dividend decisions play a very important role in corporate finance because they impact the valuations of a firm’s stocks, investor confidence, and financi
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Corporate Accounting
What are limited liability companies?
A limited liability company, LLC, is a form of business organization that incorporates elements of corporations and partnerships. As such, the owners of this bu
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IFRS
IFRS Accounting for Revenue Recognition and Long-Term Contracts
Revenue recognition is a crucial aspect of financial reporting, as it provides stakeholders with insights into a company’s financial performance. To ensur
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Financial Management
What is Weighted Average Cost of Capital?
The Weighted Average Cost of Capital (WACC) is a crucial financial metric that represents a company’s overall cost of financing its assets. It is used by
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Financial Accounting Concepts
What is a Bill of Exchange?
A bill of exchange is a financial instrument or written document that represents an order made by a drawer to another party drawee for the payment of a specific
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Financial Accounting Concepts
5 ways to improve liquidity ratios
Liquidity is the lifeblood of any organization, which can easily face its short-term obligations without a strain on finances. Liquidity ratios, like the curren
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Cost Accounting
What Are Perpetual and Periodic Stock Systems?
Efficient inventory management is a cornerstone of any successful business, whether it operates in retail, manufacturing, or distribution. Among the various app
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Financial Accounting Concepts
Key Differences Between Revenue and Income
Revenue and income are two common terms seen on the Profit and Loss account or income statement of a company. Most students non-accounting persons don’t u
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Corporate Accounting
Meaning and Types of Solvency Ratios
Solvency ratios are financial measurements used to assess a company’s ability to meet its long-term obligations and remain financially stable. These ratio