Impacts of Inflation on Working Capital Management
Inflation is an economic phenomenon characterized by a general increase in the price level of goods and services in an economy over time. While inflation can signify a growing economy, it can also significantly impact working capital management, particularly for small and medium-sized enterprises (SMEs). In this article, we will explore the effects of inflation […]
Roles and Functions of Management Accountants
The role of management accountants has evolved over the years from being solely focused on cost accounting to including a range of functions such as budgeting, forecasting, performance analysis, risk management, and strategic planning. Management accountants play a vital role in helping businesses make informed decisions and achieve their financial goals. They are responsible for […]
Difference Between Secured and Unsecured Loans
Loans are an essential type of fund for most business organisations. Businesses of all natures and sizes take loans to meet the financial needs of the organisation. There are two types of loans, secured loans and unsecured loans. But what is the difference between secured and unsecured loans? The objective of this post is to […]
The main difference between fixed and variable costs?
In business finance and accounting, it is critical to know the distinction between fixed costs and variable costs to make effective budgets, pricing decisions, and financial choices. Fixed costs, for example, rent and wages, do not change with production levels, whereas variable costs, for instance, raw materials and transportation, vary according to business activity. Understanding […]
The Use of Data Analytics in Forensic Accounting Investigations
In recent years, the area of forensic accounting has evolved rapidly, partly as a result of technological improvements. The use of data analytics in forensic accounting investigations is one of the most significant technological developments that has touched the discipline. Analysing huge and complicated data sets for hidden patterns, trends, and insights is known as […]
What is Net Realisable Value (NRV)?
Net Realisable Value is the value of a product after subtracting the expected costs of production, transaction costs and taxes related to the sale of the item. Net realisable value is usually used in measuring the value of inventory assets following a depreciation in value. Net Realisable Value (NRV) is a vital accounting concept used […]
What is Discounted Payback Period Method?
The discounted payback period method is a tool for investment appraisal that is used to determine how long it will take to recoup the project’s initial investment. It is a variant of the payback period method, which determines how long it will take to recoup the project’s initial investment without taking the time value of […]
What is a Suspense Account in Financial Accounting?
A suspense account is a general ledger account that consists of certain transactions that cannot be immediately categorised under correct accounts. The correctness of ledger accounts is not always demonstrated by a trial balance. It is just a demonstration of the postings’ mathematical correctness. There may be inaccuracies even though the sum of the credits […]
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 prepared during the accounting cycle. Its purpose is to verify the equality of debits and credits following the entry of adjusting entries into the company’s books. The adjusted trial balance […]
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 supplies, refreshments, or minor repairs. Petty cash is an accounting method used by businesses to manage these small or petty expenses, typically less than $100. In this blog post, we […]