Difference between Cost and Price
Cost and price have a distinct meanings in terms of accounting. Both terms are used in the context of sales, but
Depletion – Definition, Types, And Uses
Oil, natural gas, coal, and other types of natural resources are among those that are drilled for or harvested from
Dividend – Definition,Types, Importance, and Date...
The dividend is a part of the company’s financial plan/statement that is usually announced at the annual and quarter year. The main
Difference Between Cost and Expenses
Technically, cost and expense are the same meaning. However, they have distinct meanings when used in the context of business.
2/10 net 30 – Definition, Calculation, Pros and C...
2/10 net 30 is one of the most popular payment terms on the market today. It’s also a reliable way
Difference Between Shares and Debentures
After reading an article about methods of raising funds i.e debt and equity financing, john found two methods (shares and debentures)
Difference between capital reserve & revenue reserv...
Capital reserve and revenue reserve are two types of reserves that companies create. A capital reserve is the funds designated
Debt Financing and Equity Financing – Overview
John wants to start a new business. He needs $600,000 to convert his idea into a business. Unfortunately, he has
Difference Between IFRS and GAAP
The accounting information became less valuable and incomparable due to the many accounting policies and the accounting treatment of transactions
Fringe Benefits – Objective, Examples, and How th...
When you hiring for a job, it is essential to know the company’s complete compensation packages. Packages include both salary
Modern Approach of Accounting- Classification of accoun...
There are two types of techniques for accounting for financial transactions. The Traditional Approach and the Modern Approach are two different approaches.
Traditional approach to accounting – Classificati...
Various approaches have been applied to financial accounts over time. Some of these approaches are traditional and modern approaches. The
Single-Entry System of Accounting
A single-entry system (also known as a cash basis accounting) involves recording transactions when the money is paid instead of when
Comparative Financial Statements
Comparative financial statements present financial information for two or more reporting periods. This can help analyze the company’s financial health
Double-Entry system of accounting
Two methods of accounting and bookkeeping are the single entry system and the Double entry system used by businesses to record their financial transaction.
Break-even points in accounting
The Break-even point in accounting is a crucial element in many businesses’ financial planning and budgeting activities. Although it is also known
What is Contra Account? – Definition, Types, Bene...
Contra accounts help determine a company’s historical cost; these accounts assist financial managers, and accountants in maintaining clean and easy-to-track
Types of Inventories
If we talk about Inventory, it goes through many stages before it gets to the customers, from purchasing raw materials
What is Marketable Securities and Examples
Marketable securities are financial liquid tools that can be converted or sold into cash within a year of investment. However,
What are Cash and Cash Equivalents?
A business that generates enough cash can meet its daily needs while staying out of debt. However, a company will
What is the operating cycle?
The operating cycle is a great way to measure the company’s efficiency to determine how smoothly operations are running and
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