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… Read Article
Financial Accounting
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… Read Article
Materiality
Materiality is a concept in accounting that states that a firm can ignore small information that does not significantly impact the business. This also… Read Article
Post-closing Trial Balance – Meaning, Purpose And More
A Post-closing Trial Balance lists all the balance sheet accounts with a non-zero balance at the end of a reporting period. Hence, Companies use… Read Article
Closing Entries
Closing entries are the journal entries that are made at the end of an accounting year to transfer the balance from temporary accounts to… Read Article
Journal Entry
Journal entries are the first step in the accounting cycle. They are used to record all business transactions and events in the accounting records… Read Article
T Accounts
‘For every action, there is an equal and opposite reaction.’ A couple of hundred years ago, Sir Newton gave this phrase to the world.… Read Article
Accountant
An accountant is a professional who performs several accounting functions for a business or an individual. Common functions include audits, financial statement analysis, preparation… Read Article
Operating Expenses – Meaning, Importance And More
Operating Expenses or OPEX are those that a company incurs to keep the business running or in the normal course of business. A company… Read Article
Net Sales
Net sales is the income earned by a company after deducting its returns and discounts. The comprehensive income produced by a company in a… Read Article
Comprehensive Income – Meaning, Purpose, And More
Comprehensive Income is the change in owner’s equity for a period excluding any contribution from the owner. In simple terms, it is the total… Read Article