This Accounting category will cover various topics on accounting ranging from financial, management, and advance accounting.
In this article, we will cover how to calculate the residual income in management accounting or performance management. Before jumping into detail, let’s understand some overview as well as some key definitions of the residual income. Management of a company appraises the income yielded after paying all the relevant costs of capital in order to […]
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In this article, we will cover in detail about the financial analysis techniques or tools in order to analyse financial statements. This ultimate guides of the financial analysis techniques will provide you an insights how to use various techniques or tools in performing the financial analysis of financial statements of a company. Reading financial statements
Financial Analysis Techniques or Tools, The Ultimate Guides Read More »
In this article, we will cover how to calculate the variable overhead rate variance. This includes the definition, important, formula, example, reasons for favorable and adverse as well as the limitation of variable overhead rate variance. What is Variable Overhead Rate Variance? The variable overhead rate variance is the difference between the actual and budgeted
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In this article, we will cover how to calculate sales mix variance. This includes the definition, important of sales mix variance, example calculation, causes for favorable and adverse variance as well as the limitation of sales mix variance. Variance reports are developed at the closing of each control period (say, at the end of each
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The statement of stockholders’ equity is also known by the following names; statement of shareholders’ equity, statement of equity, statement of changes in stockholders’ equity, statement of changes in shareholders’ equity, and statement of changes in equity. We usually use these key term interchangeably. Statement of stockholders’ equity is one of the five components of
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Budgeting is the process of making a plan or forecast for the future of a business. Budgeting is an important part of the management and cost accounting of a business. The budgeting process of a business consists of forecasting its incomes and expenses. Once these incomes and expenses are determined, the forecasted profits of the
Budgetary Control: Meaning, Objectives, Advantages and Limitation Read More »
Overview Financial statements are reports that provide information to their users regarding different aspects of the business. All businesses must produce financial statements. Sometimes, businesses prepare financial statements because they are required by relevant rules and regulations. However, some businesses, that are not required by rules and regulations, may also prepare financial statements voluntarily to
What is Common Size Balance Sheet? Read More »
Overview In this article, we will cover how to calculate EBITDA. Before going in detail, let’s go through the overview and basis definition of EBIDTA. Basically, there are many ratios and statistics that investors use to check whether investing in a particular business is profitable for them. These ratios can tell the investor different information
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Financial accounting rests on two pillars of recording and summarizing the accounting records. These accounting records from registering in a ledger to analyzing and interpretation must follow some rules. Without following rules the data presented and evaluated would be null and void. There are several accounting principles or concepts that a business can follow or
The Consistency Principle in Accounting Read More »
The Money measurement concept is one of the basic accounting principles or theories that form part of the larger set of accounting rules. Record keeping and performance measurement are key components of an accounting cycle. Financial accounting is based on several principles such as business entity concept, historical cost, accrual basis accounting principle, matching principle,
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