What is Accrual Accounting? Definition: Accrual accounting is defined as an accounting method in which revenues or expenses are recorded at the same time when…
Transfer Pricing – Definition, Working, Methods and Example
Transfer pricing (TP) can be understood as the procedure that globally expanded organizations follow while transferring merchandise or goods starting with one division then onto…
Average Fixed Cost – Definition, Formula and Examples
What is the Average Fixed Cost? Definition: Average fixed cost is defined as the amount it costs to a business for producing a unit of…
Acid-Test Ratio – Definition, Calculation and Formula
What is an Acid Test Ratio? Definition: An acid-test ratio is defined as a financial measure of a firm’s potential to repay its immediate liabilities,…
What is Accumulated Depreciation? – Definition and Formula
What is Accumulated Depreciation? Definition: Accumulated depreciation is defined as the increasing depreciation of an asset up to a specific point in the asset’s life….
Accrued Liability – Definition, Types and Examples
What is Accrued Liability? Definition: An accrued liability is defined as an expense that a business has incurred in an accounting period but it is…
Accounts Payable – Definition, Process and Example
What is Accounts Payable? Definition: Accounts payable is defined as the amounts due to a company or business when they purchase goods or services from…
Accounting Period – Definition, Types, Concept & Regulation
What Is An Accounting Period? Definition: An accounting period is defined as the period of time for which a business performs its accounting functions and…
What are the 13 Basic Accounting Principles?
Accounting principles are defined as the general rules, regulations, and guidelines that are used for governing the field of accounting. The purpose of accounting principles…
Accounts Expenses – Definition, Types and Categories
What are Accounts Expenses? Definition: Accounts expenses are defined as those expenditures that a company makes to ensure the smooth running of the business. These…
Accountant – Definition, Types, Duties, Salary and Skills
What is an Accountant? Definition: Accountants are defined as financial professionals who handle the series of accounts of private or public companies for ensuring the…
Accounting Equation – Definition, Formula and Applications
What is Accounting Equation? Definition: The accounting equation is defined as the double-entry accounting system used to represent the relationship amongst assets, liability, and owner’s…
An Introduction to Accounting Ratios and Formulas
What Are Accounting Ratios? Definition: Accounting ratios are defined as the group of metrics used to gauge the efficiency and profitability on several parameters by…
Accounting Policies – Definition, Importance and Examples
What Are Accounting Policies? Definition: Accounting policies are defined as the specific set of principles and procedures used by a firm’s internal management team to…
Accounting Information System – Definition and Functions
What is an Accounting Information System? Definition: An Accounting Information System (AIS) is defined as a computer-based system that tracks accounting activities and collects, manages,…
