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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 Petty Cash in Accounting?
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 Accounting Concepts
What is Credit Risk?
Credit risk is a term used to describe the potential financial loss a lender may experience when a borrower fails to repay a loan or credit. In other words, it
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Money and Investment
Top 5 Career Options for Accounting Graduates
If you’re an accounting graduate, congratulations on completing a rigorous academic program that has prepared you for a bright future in the business worl
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Financial Accounting Concepts
What is Business Entity Concept?
The business entity concept is a fundamental accounting principle that defines a business as a separate economic entity from its owners. This principle is cruci
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Financial Accounting Concepts
The Impact of Inventory Control on Business Profitability
Inventory control plays a critical role in the profitability of a business. It is the process of managing the inventory levels of a company to ensure that it ha
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Corporate Accounting
The importance of gearing ratios in financial analysis
Financial gearing ratios are financial metrics that compare a firm’s debt to other financial metrics such as company equity and assets. The primary purpos
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Financial Management
What is a Funds Flow Statement?
A funds flow statement is a financial statement that shows how funds have moved in and out of business during a specific period of time. It is a tool used by bu
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Financial Accounting Concepts
What is the Cost of Goods Sold? Definition | Formula
Cost of Goods Sold (COGS) is a financial metric representing the cost of the products or services a company sells during a given period. It is an important expe
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Money and Investment
Understanding the Face Value of a Share: A Beginner’s Guide
If you’re new to the stock market, you may have heard the term “face value” being used when referring to shares. But what does it actually mea