What Is Accounting for Managers?
Every business manager, department head and members of the management team should have a basic understanding of accounts. This basic accounting information ensures that managers get fully involved in …
Financial Accounting
Capital Expenditure
What is Capital Expenditure? Capital expenditures are the expenses which the firm incurs for acquiring or upgrading or maintaining the tangible assets like plants and machinery, buildings, other types …
Earnings vs Revenue – All You Need To Know
Often the terms earnings and revenue are used interchangeably, but they are very different from each other. To put it simply, revenue is the total sales made by a …
Residual Income Formula – All You Need To Know
Residual Income is the money remaining after paying the necessary expenses and costs. In technical terms, it is the income that one generates in excess of the minimum rate …
Adjusting Entries – Meaning, Types, Importance And More
Organizations usually make Adjusting Entries on the last day of an accounting period to ensure that the accounts are in line with the accrual method of accounting and the …
Contingent Liability – Meaning, Importance, Types And More
Contingent Liability is the best guesstimate by the company of a situation that might turn into a liability. Whether or not a contingent liability turns into an actual liability …
Salvage Value – Meaning, Importance, How to Calculate
Salvage Value is the amount that a company expects to get at the end of the useful life of an asset. There are various terms for salvage value such …
Matching Principle – Meaning, Importance And More
Matching Principle is a common accounting concept. Under this, a company should report an expense in the income statement in the same period when it earns the revenue. Put …
Net Realizable Value – Meaning, Formula, Uses And More
The Net Realizable Value or NRV is the value of an asset that a seller expects to get less the cost or expenses in selling or disposing of the …
Pre-determined Overhead Rate – Meaning, Calculation And More
A Pre-determined Overhead Rate is a projected ratio of overhead costs, which is determined at the start of the year. A company determines this ratio (or overhead absorption rate) …
