Contingent Liability – Meaning, Importance, Types And More
Contingent Liability: MeaningContingent Liability is the best guesstimate by the company of a situation that might turn into a liability. Whether or not a… Read Article
Trend Analysis – What It Means, Uses, Types And More
Trend Analysis is a statistical tool that helps to determine the future movements of a variable on the basis of its historical trends. In… Read Article
Legal Due Diligence – Meaning, Scope & Advantages
Legal Due Diligence MeaningDuring a merger or an acquisition, the buyer conducts legal due diligence on the target company as a part of the… Read Article
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… Read Article
Effective Interest Rate – Meaning, Formula, Importance And More
Effective Interest Rate is the true interest rate that a company or an individual earns or pays over a given period of time as… Read Article
Matching Principle – Meaning, Importance And More
The matching principle is a common accounting concept or accounting principle. Under this, a company should report an expense in the income statement in… Read Article
Prime Cost – Meaning, Formula, Importance And More
What is Prime Cost?Prime Cost (or Flat Cost or First Cost) in managerial accounting is the direct cost that the company incurs in manufacturing… Read Article
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
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