Overview In this article, we will cover the accrual vs deferral and its keys differences with example. Before, jumping into detail, let’s understand the overview and some key definitions. The accounting system of a business follows the double-entry system of bookkeeping. This system of bookkeeping states that business transactions will be recorded in two different […]
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Overview In this article, we will cover in detail about the account receivable collection period. This include the key definition, purpose, formula, explanation and analysis as well as its limitation. Before we jump into detail, let’s understand the overview as well as some key definition below. As we are aware of, most businesses rely on
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Introduction In this article, we will cover the prime and conversion costs of a business. This includes the key definitions, examples and key differences between the tow costs. First, let’s understand some overview of the basic costs structures as below. As we are aware of, Typically businesses exist to make profits. These profits are generated
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Overview In this article, we will cover the contingent consideration. This include the different forms of consideration, how contingent consideration happen? In addition, we also cover the accounting for contingent consideration as well as the example. Before, we jump to the detail of the topic, let’s understand some back overview and influences as well as
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Definition The working capital turnover ratio is a ratio of the turnover of the business to its working capital. It is a measure of the ability of a business to use its working capital to support its turnover, or revenues. The ratio can be used to evaluate the efficiency of a business in using its
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Overview In this article, we will cover the accounting for treasury stock. Before jump to detail, let’s understand the overview as well as the key definition of treasury stock. Modern businesses structures have evolved greatly. There are many forms of businesses that are common today. These may include forms such as sole proprietorship, partnership or
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Overview In this article, we will cover all aspect of preferred stock including its types, valuation of preferred stock and example. Company issue their stocks or shares in the stock market that common public or other companies can buy to become the owner of the company. They are also called shareholders of the company. When
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Overview In this article, we will cover the accounts receivable confirmation. Before, we understand such confirmation, let’s get some overview about the auditing and why do we need to do the accounts receivable confirmation. Auditing is the process of reviewing and examining the financial statements of a business without any bias to express an opinion
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Introduction In this article, we will cover the sales price variance analysis. It is sometimes called selling price variance. Variance analysis is one of the key tools in performance management. IT gives management a chance to implement the higher standards and revise the lapses in planning and implementation. Definition In simple terms, the variance can
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Introduction Variance analysis is the most important tool for budgeting and control cycles for any company. A total sales variance indicates the under or over sales in comparison to the target sales. Total Sales variance comprises two main parts of Sales Price Variance and Sales Volume Variance. The Sales volume variance can be further analyzed
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