A. (2001). The meaning of a defined accounting concept: regulatory changes and the effect on auditor decision making. Accounting, Organizations and Society, 26, 123-139.HRONSKY, J. J. F.; HOUGHTON, K. A. The meaning of a defined accounting concept: regulatory changes and the effect on ...
As you can see from above, industries like Banks have a very long receivables period (in excess of 300 days), however, for capital goods and heavy asset industries like machinery, construction, metals, etc., it is around 100 days.
At the end of every accounting period the accounting books are to be closed and preparing the trial balance is the first step towards it. In this sheet, according to the double entry system, there is a debit and also a credit column where all ledger balances are posted. The two columns ...
oWhen it comes to the identification of a business’s solvency, which is its ability to spend its short-term obligations with the use of existing assets, one can utilize many accounting ratios. One of the most commonly used ones is the current ratio, which aids in the evaluation of the ...
To make sure you're clear on the concept of selling, here's a quick lesson on the basics of sales. Sales involve two parties who agree upon a transaction and exchange money for goods. One party sells the good and the other buys them. This process happens over a period of time and us...
Logistics, a term with military roots, is a fundamental concept in business. Logistics is getting resources—people, materials, and products—from their point of origin to their destination, efficiently and on time. But what does logistics mean for retail businesses? Let’s dive in and explore ...
Matching Concept Materiality Monetary Unit Reliability Revenue Recognition Time Period Economic Entity Assumption This accounting principle treats the owner and the business as two different entities, and they both have different legal liabilities. Business transactions should be treated separately from the ow...
In the realm of emergency response, the mental health of fire rescue personnel holds significant importance. Given that they are constantly confronted with sudden disasters, the coping style they adopt has a profound impact on their overall well-being. Although it is already known that there exists...
Net present value (NPV) is a fundamental concept in financial management, helping us determine the worth of investments in today’s terms by considering the time value of money. It is an important tool for accurate decision-making, enabling us to compare investment opportunities, manage risk, an...
Perhaps the most widely used managerial accounting tools, budgeting and forecasting help organizations plan for the future and track progress against those plans. Zero-based budgetingrequires justifying all expenses from scratch each period rather than incrementally adjusting previous budgets. ...