Accounting

This Accounting category will cover various topics on accounting ranging from financial, management, and advance accounting.

What is Year-Over-Year (YOY)?

Year-over-year or year-on-year (YOY) is a comparison term you have seen everywhere. It is used to compare two annual figures and is most commonly used in financial data sets. YOY analyses are common for economic, business, and investment analyses. It is a simple term and can be calculated easily for any type of data. Let …

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Is Deferred Revenue a Liability?

Deferred revenue is unearned income that a business received in advance. It is recorded as a current liability on the balance sheet of a business. Once the seller delivers the promised goods/services, the current liability is removed and turned into earned revenue in the income statement. Let us discuss what is deferred revenue, how it …

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Depreciation Vs Amortization Vs Depletion – What is the Difference Between Them?

Depreciation, amortization, and depletion are all cost allocation methods for different types of long-term assets owned by businesses. All of these are accounting terms with non-cash entries and effects on profits. These accounting methods help companies follow the accrual accounting principles of matching entries. Let us discuss what these terms and the key differences between …

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What is Triple Bottom Line?

The triple bottom line (TBL) or 3BL is a framework that aims to bring the people and planet aspects along with the conventional one of profit. The TBL theory suggests that businesses must adopt better social and economic policies that bring benefits in all three aspects rather than focusing on profits only. Let us discuss …

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What is Nominal Ledger?

A nominal ledger is the primary source document for the accounting records of a business. It forms the basis of an accounting system in any business. Nominal ledger records all financial transactions categorizes them into different classes and provides useful information to the users. Let us discuss what is a nominal ledger, how it works, …

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