: Business Entity, Money Measurement, Going Concern, Accounting Period,Cost Concept, Duality Aspect concept, Realisation Concept, Accrual Concept and Matching Concept. What is periodicity and its causes? Periodicity : "The repetition of Certain properties by the elements at a regular interval is known...
The accounting period is the time in which the business prepares financial reports. Let’s understand what is the accounting period with the concept & its steps.
Project accounting and risk analysis – Ways to identify and quantify the risk. Discuss the du Pont analysis as a method used for improving the performance of an organization. Concept of strategic management accounting and how it can be beneficial for the hotel industry. Discuss the competitive ad...
Strictrevenue recognitionis a common policy for many companies using accounting conservatism. Revenue recognition follows the basic accounting concept known as thematching principle, which requires that all expenses incurred during theaccounting periodare included with all revenues reported on thefinancial sta...
Cost accounting is helpful because it can identify where a company is spending its money, how much it earns, and where money is being lost. Having a clear idea of the costs associated with running a business makes it easier for management to boost profitability. ...
Accounting means information should be relevant to the decision making needs of the user and helps users of the financial statements in predicting future trends of the business (Predictive Value) or confirming or correcting any past predictions they have
Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction occurs vs. when payment is received or made. The method follows the matching principle, which says that revenues and expenses should be recognized in the same period. Accrual accounting uses the dou...
Explain what is a receivable turnover calculation and how it is used. What is the meaning of amortization in accounting? Explain what does accrual period means in vacation and sick time. What do you understand by the term outside accountant in accounting?
A statement of owner's equity is used in several key situations: End of accounting period: An owner’s equity statement is typically prepared at the end of an accounting period (monthly, quarterly, or annually) to show the changes in the owner's equity over that period. Reporting to stakeh...
Cost of goods sold (COGS) is a line item on a business’ profit and loss (P&L) statement, which also includes its revenue, expenses, interest, taxes and net income. The P&L provides insight into the company’s profitability for a set accounting period....