Posted inAccounting Basics
Objective Evidence Concept
According to the Objective Evidence concept, every financial entry should be supported by some objective…
Posted inAccounting Basics
Accrual Concept
As stated above in the matching concept, the revenue generated in the accounting period is…
Posted inAccounting Basics
An Overview of Contracts and Why They are Important to Business and Society
Contracts govern all transactions whether they are between firms or between firms and private individuals.…
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Need for a Theory of Accounting to Improve the Accounting Profession
Creative Accounting and the Need for a Theory of Accounting The rise of “creative accounting” practices, an…
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Matching Concept
Matching concept is based on the accounting period concept. The expenditures of a firm for…
Posted inAccounting Basics
Need for a Uniform and Common Theory of Accounting
The frequent attempts by experts and professionals on having a “theory” that would guide accountants…
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Working Capital Cycle
Generation and disbursement of cash is carried out in the manner depicted by the following…
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Gross Working Capital and Net Working Capital
Gross working capital means the investment in current assets, whereas the Net working capital means…
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Management Accounting – Working Capital
Working capital is defined by experts as follows - “Working capital is the amount of…
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Management Accounting – Useful Ratios
Short–term Financial Position or Test of Liquidity(a) Current Ratios= Current AssetsCurrent Liabilities(b) Quick or Acid…