Accounting Profit vs Economic Profit – All You Need To Know
Profit is the most important indicator of the financial health of a company. A company that is not earning a profit is not likely to survive in the long-term. …
Financial Accounting
Advantages and Disadvantages of Holding Company
Holding company as the name suggests holds the stocks of another company. Such a company does not usually carry any traditional business activities, such as manufacturing or offering services. …
Internal Growth Rate – Meaning, Importance and More
Internal Growth Rate (or IGR) is the maximum growth rate that the company is confident of achieving without having to obtain funding from outside. This is the growth rate …
Angle of Incidence – Meaning, Importance And More
The Angle of Incidence in accounting occurs when the entire sales line crosses the cost line from below in the break-even chart. Or, it is an angle that gets …
Advantages and Disadvantages of Bank Reconciliation
Before we look into the advantages and disadvantages of bank reconciliation, lets quickly go through what the term stands for. So, bank reconciliation is a process wherein the bank …
Leasehold Improvement GAAP
A Leasehold Improvement is the changes made to a rental property, in order, to meet the needs of a tenant. There can be various improvements such as installing partitions, …
Discontinued Operations – Meaning, Disclosure And More
Discontinued Operations are that part or portion of a company’s core product that no longer functions. Also, these parts are either held for sale or are already sold. For …
US GAAP – Meaning, History, Importance And More
Generally Accepted Accounting Principles or GAAP is also known as US GAAP as it is in use in the US. These are the set of rules in place meant …
Extraordinary Items Under GAAP – All You Need To Know
Extraordinary items in accounting is an event or transaction that does not relate to normal business activity and occur rarely. The treatment of extraordinary items under GAAP (Generally Accepted …
Advantages and Disadvantages of Limited Liability Company
To understand the advantages and disadvantages of a limited liability company, let’s take the example of three individuals: Sam, Paul, and Harry. They want to start a business together …
