Pareto Principle
The Pareto Principle derives its name from a respected economist Vilfredo Pareto. This principle states that 80% of the consequences are a result of 20% of the causes. Hence, …
Plowback Ratio – Meaning, Importance, Formula and More
Plowback ratio represents the earnings that a company retains after paying for the dividends to the shareholders. The ratio is commonly known as retention ratio and is the opposite …
Conflict Theory
Conflict theory, given by Karl Marx, depicts that there exists a struggle because of limited resources & unlimited utilities of resources. Further, the never-ending competition for these finite resources …
Budgeted Income Statement – Meaning, Importance And More
Organizations always rely on comparative performance to understand where they lack and the places where they excel. A Budgeted Income Statement serves the same purpose. Also called a pro …
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 …
Stock Dividend Investing – Strategies, Tax Implications And More
Stock Dividend Investing is a way for shareholders to generate extra income in addition to the appreciation in the market value of their portfolio. Herein, investors buy dividend stocks, …
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 …
