What is the Meaning of Fixed Expenses? Don't Guess, Know it HERE
Meaning of fixed expenses
Fixed expenses do not vary with the change in production; they remain constant. Buzzle furnishes its meaning in detail along with examples.
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Striking Differences Between Capital and Revenue Expenditures
Difference between capital and revenue expenditure
Expenses can be of capital or revenue in nature. This classification is vital so that the financial statements reflect the true position of the entity. Buzzle, in the following article, furnishes information about the differences...
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Calculate Your Capital Expenditures With This Helpful Guide
Calculating capital expenditure
Capital expenditures (Capex) are the expenses made on future assets. The Buzzle article below will explain how to calculate capital expenditures.
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Smart Business Analytics: Accounting Profit Formula to the Rescue
The growth of a business depends on the accounting profit earned in a financial year. That makes it imperative for any business to track and calculate it. Here, we have provided the formula for calculating accounting profit along...
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Do You Know How the Hybrid Method of Accounting Works?
With the steady rise in the volume and sizes of businesses, conventional accounting evolved into double entry systems, subsequently cost accounting and managerial accounting were also introduced. Today, the world of finance, is yet...
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Engaging Facts to Know About the Accrual Method of Accounting
How does the accrual method of accounting expenses work? This might be a question before many students of accounting and finance. In this article, I shall present to you the workings of this method as well as its rules and...
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Find Out How Realistic the Prominent Cash Method of Accounting Is
The cash method of accounting is a well-known and widely used technique which has some advantages and disadvantages. In this article, we shall know about this accounting technique in detail.
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The Application and Importance of Job Costing Vs. Process Costing
If you are confused about what exactly is the difference between job costing and process costing, this article will help in clearing out the concept. Here I compare the two processes.
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Learn About the Importance of Accounting and Check Your Expenses
The importance of accounting and its scope has increased, as accountancy has not just remained a skill of keeping records. Deep analysis, compliance, rectification, and lawfulness have become some new integrals of accounting.
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The Concept of Accrued Liabilities Explained With an Apt Example
Being aware of the accounting concepts under GAAP is essential for all accountants and students of management and accounting. The article below explains what accrued liabilities are.
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Confused About the Liability Vs. Expense Debate? We'll Help You
In the following Buzzle article the comparison of liability vs. expense has been given, by enlisting a few of their distinguishing points. Keep reading...
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Do Gross Sales Give a Complete Picture of the Total Sales or Not?
There are various metrics through which an organization can gauge its efficiency. The total sales of a company are measured by calculating its gross sales. Let us know more about the topic.
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Indispensable Lessons on Accounting - What are Prepaid Expenses?
The concept of prepaid expenses is occasionally used in financial, cost, and managerial accounting policies. Read this Buzzle article to know more about the subject.
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Reasons to Implement Accounting Ethics for Good Business
Accounting is an integral part of our business and finance world. However there are some accounting ethics to be kept in mind for all financial transactions made. It is quite important to follow these paradigms to run a profitable...
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Survive Bad Inflation With These 4 Effective Cost Control Methods
Business managers throughout the world fight a never-ending battle against rising costs. Cost control methods are constantly being derived, developed, deployed, and discarded, in order to reduce the cost of all operations.
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Not Sure What Cost Benefit Analysis is? Get to Know About it Now
Cost benefit analysis helps us to make business decisions regarding different projects. As the name suggests, it also helps us to identify the amount of capital to be spent and the benefits to be made from a particular project.
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Do You Know These Accounting Principles and Concepts for Sure?
The accounting principles are rules that apply the practices of accounting and give guidelines to deal with complex transactions. These principles are then divided into different concepts and conventions. Read the Buzzle article to...
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Keep a Check on Frauds With These Cash Audit Procedures
Every organization must have checks and balances to ensure transparency and accountability in financial matters. The cash audit is one such procedure that every business puts in place. Read through this article to learn more about...
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Your Complete Guide on How to Prepare a Methodical Cost Sheet
There may be many questions in the minds of many businessmen who have their own factories, prominent among them being, how to prepare a cost sheet. Well, this article will tell you all about it.
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Let's Throw Some Light on What's Matching Principle in Accounting
The concept of matching principle in accounting helps in linking revenue earned to the associated costs incurred. Read the following article to understand this concept in detail.
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Do You Know These 5 Quintessential Objectives of Accounting?
The financial plans of any firm or business depends on the accounting objectives. In this article, we will take a brief look at what are the primary objectives of accounting and try to understand the influencing factors and the...
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Financial Accounting Vs. Managerial Accounting: Unearth the Facts
Financial accounting and management accounting are two different methods employed by organizations for different purposes.
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Crucial Things You Should Know About Trade Discount and its Value
They are a very common marketing ploy used to increase the popularity and sales of a product. Here is how you can use a trade discount to your advantage.
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Gain More Facts About Cost Accounting Vs. Managerial Accounting
In the following paragraphs, a brief, yet comprehensive elaboration regarding cost accounting vs. managerial accounting has been given.
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Clear Your Doubts With Examples That Explain Intangible Assets
Assets are classified into two main types - tangible and intangible. Go through this article for some information about intangible assets.
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Know the Significance of Accounts Receivables Turnover Ratio Now
This ratio is an indication of the efficiency of a company in collecting credit sales. While computing this ratio only credit sale is included. The higher the ratio means greater the efficiency which is a desirable aspect for any...
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What's Going Concern Principle and Why You Should Know About It?
What exactly is the going concern concept in accounting? How does it affect financial projections? Read to know all about it.
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Why is the Revenue Recognition Principle Important in Accounting?
Are you coping with accountancy and its various principles? Well, as far as the revenue recognition principle is concerned, help is here!
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Here's an Example Illustrating the Percentage Completion Method
An accounting method, percentage of completion is used to evaluate the cost of ongoing long term projects by computing the cost of the project in the current fiscal year. This method to ascertain cost has a very effective formula...
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Did You Know These are the 5 Steps of the Accounting Cycle?
Understanding the accounting cycle is of prime importance for students, as well as those working as accountants in different firms. In what follows, the steps of this cycle are described in detail.
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Why is the Cost Recovery Method Generally Followed in Accounting?
This article aims at explaining the cost recovery method in accounting, along with an example. Read to know all about this important accounting technique.
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Business Finances: Cost Accounting Vs. Financial Accounting
The two techniques, financial accounting and cost accounting, are synchronous to each other yet targeted for different interested parties. The concept and some technical factors that differentiate the two are provided in the...
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How to Accurately Calculate the Liability of an Unearned Revenue?
What is unearned or deferred revenue? How is the liability associated with it calculated? Read to find all the answers.
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The 10 Fundamental Generally Accepted Auditing Standards (GAAS)
It is absolutely essential for an independent auditor to comply with the '10 Generally Accepted Auditing Standards (GAAS)'. This Buzzle article enlists these standards, to help you understand what it takes to achieve quality...
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6 Predominant Accounting Conventions You Should be Well Aware Of
A thorough knowledge of accounting conventions and practices is very essential for all accountants, management students, as well as businessmen.
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What's Profit Margin Ratio and its Importance in the Company?
This article will tell you all about the profit margin ratio and what it indicates for a business. While the turnover is an important consideration, it is this ratio that ultimately denotes the financial health of a business.
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What is Contribution Margin and Why is it So Very Significant?
All you ever wanted to know about a contribution margin has been explained in this article. By calculating this valuable parameter, important decisions about the future of a product can be made.
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What are Hidden Accrued Expenses and its Variants in Accounting?
In the following article, the financial concept of accrued expenses has been discussed. To know more about accrued expenses, read on.
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3 Common Payable Procedures Every Accountant Must Know
Accounts and finance departments often deal with a type of liability known as accounts payable. In the following article, a brief elaboration on some of the general procedures for listing accounts payable is given.
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What is Accrued Revenue? What are its Implications in Business?
The accounting concept of accrued revenue is discussed in this article. Read to know all about this important parameter.
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Basic Monetary Wisdom - What is the Meaning of Accounts Payable?
This article is a brief explanation of what the term, accounts payable means in accounting parlance. Read to know all about this vital financial parameter.
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Grasp the Basics of Debit Vs. Credit Quickly, No Questions Asked
The world of commerce revolves around the terms debit and credit. Here, a small comparison between the two terms have been explained. To know more, read on.
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What is Managerial Accounting? Discover the Inner Picture
Accountancy is a pretty vast domain and has much more to it than just arithmetic calculations. In this article, we will look at one of the fundamental branches known as managerial accounting.
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Gross Vs. Net Profit Easily Explained for Your Financial Benefit
In the following article, some important distinguishing points between gross and net profit have been discussed. The convention of calculating them is very common and is widely followed in the business world.
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Do You Know Anything About the Equity Method of Accounting?
If you wish to learn about the equity method of accounting for investments in common stock, you have come to the right place. This article will give you all the details on the definition, equity accounting for joint ventures, and...
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Valid Reasons to Pursue a Bachelor's Degree in Accounting
Bachelor's degree in accounting is a precondition to work as an accountant in the finance sector. Every organization whether a multinational company, or a small organization, or even a grocery shop, need to maintain its accounts.
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Samples That Show How to Prepare an Expense Report Easily
Organizations use an expense report to record the expenditure incurred by the employees during a business trip. In this article, we will take a look at some sample expense reports.
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Understanding Horizontal Analysis and its Importance in Business
Horizontal analysis is one of the foremost techniques in financial management and analysis. It is very useful in calculating the growth of an item over a timeline that the analyst chooses.
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Overview of Generally Accepted Accounting Principles (U.S. GAAP)
U.S. GAAP
U.S. GAAP is the standard platform of guidelines regarding rules for financial accounting that're needed in the preparation of financial statements. Although quite flexible in its rules, this framework is based upon certain...
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Basic Accounting Concepts and Principles Explained Simply
GAAP in accounting
Accounting refers to the systematic recording of business transactions and preparation of statements relating to assets, liabilities and functioning results of a business. Accounting has to follow certain fundamental rules that...
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Economic Profit Vs. Accounting Profit: Differences You Didn't Know
Difference between economic profit and accounting profit
Economic and accounting profits are both financial entities that help measure the performance of the company. The economic profit vs. accounting profit article below elaborates on the key differences between the two.
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The Real Purpose of Accounting Not Everybody Knows
Companies invest a lot of time and money in maintaining their accounts. Besides being a mandatory requirement, maintaining proper accounts can help the company in various ways. Listed below are some of the reasons why it is so...
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Internal Controls in Accounting You Don't Know About, But Should
Accounting is a crucial field that demands compliance with many standards and statutory requirements. Internal controls in accounting are not only a statutory requirement, but are also instruments of financial management.
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9 Steps of the Accounting Process Impeccably Explained
Accounting is used for gaining quantitative information about the finances. The accounting process includes a sequence of activities that involve recording the income and expenditure of an organization. This Buzzle article will...
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The Perfect Explanation of the Cost Method of Accounting
To explain the cost method of accounting in simple terms, an investor lists his investment expense or the actual cost of the stock on a single line of an investment balance sheet. Likewise, when he sells the stock, the income would...
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An Accurate and Detailed Explanation of Cost Control Management
In this world of cut-throat competition, it is essential for a company to adapt to changes in the long run. Cost control is, basically an adaptation by companies to improve their profitability with less expenses.
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The Types of Accounting You Really Need to Know
The word 'accounting' is used in a very abstract manner; however, it encompasses many financial methodologies. The article below contains some basic types of accounting, which will help you understand the fundamental knowledge...
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An Introduction to Financial Accounting
Accounting is a very important/critical process, with the help of which, the management of an organization attempts to manage and control its economic performance. If you are an accounting student, or aspire to pursue your career...
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Types of Accounting Careers
If you are good with numbers, then a career in accounting must be explored. Let's take a look at some of the different types of careers in accounting.
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Job Cost Sheet
Do you need to make a job cost sheet in order to keep track of the costs incurred in providing services to customers? If yes, then in this article, you will learn how to draft a cost sheet with the help of a template.
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Glossary of Accounting Terms and Definitions
Bookkeeping and accountancy deal with maintaining record of all the transactions that a business/individual makes. The Buzzle article below provides a glossary of accounting terms and definitions that are most commonly-used.
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Income Statement Template
What is the best way of making an easy-to understand and easy-to-use income statement? Since it is a formal affair, you can pick out an example of your choice and go along with it.
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Net Sales Vs. Gross Sales
Before starting a company, you should understand the comparison of net sales vs. gross sales. The article below highlights the difference between the two entities.
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Ledger Balance Explained
Ledger balance meaning
A ledger balance is nothing but the difference between the debits and credits of a ledger account for a given accounting period. This Buzzle article explains the concept with the help of an example.
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5 Revenue Recognition Methods
Revenue recognition methods
Revenue recognition policy impacts the representation of your financial statements as well as the tax liability to be computed thereon. There are various revenue recognition methods which have to be adopted as per the peculiarity...
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Key Differences Between Capital Expenditures and Operating Expenditures
Difference between capital expenditures and operating expenditures
Capital and operating expenditures are expenses incurred for future assets and daily utilities, respectively. The Buzzle article below will give the key differences between capital and operating expenditures.
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Cost Method of Accounting for Investments
The cost method of accounting for investments is used to determine the profit and loss of any investment. Apart from that, this method is also used to compute the return on investment of a certain investment. To know more about...
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How to Calculate Net Income after Taxes
If you are looking for clear guidelines explaining the calculation of net income after taxes, this article will definitely be a helpful read. Along with an explanation of the procedure, an online calculator is presented, which...
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What Is Cost Accounting
When one indulges in business, cost accounting is the most essential component that systematically evaluates the costs that the organization incurs.
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Cost Sheet Template
The objective of any cost accounting, costing, and cost sheet, is simple; derive the cost of goods based upon the cost that has been incurred to manufacture those goods.
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What is Owners' Equity
It is important for all businessmen to be aware of what owners' equity is and how it is quantified. In this article, we explain the concept, along with the formula used to calculate the same.
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Tangible Assets
The concept of tangible assets is extremely easy to understand. Find out how, in the article below.
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Why is Accounting Important
We have all heard about accounting, but have you ever wondered why is accounting important? Here we give you the reasons of why is accounting so important not only for a business but also in our day-to-day lives. Read on...
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What is a Multi-Step Income Statement?
If you are planning to invest in the stock market, then you need to understand the basic financial terminologies, such as multi-step and single-step income statements, balance sheet, statement of cash flow, etc. This will help you...
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Benefits of Accounting Outsourcing
One of the most apparent benefits of accounting outsourcing is that operating costs of the company gets reduced substantially. This article focuses on the advantages that this kind of outsourcing has...
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Accounts Receivable Aging Report
In the world of business, an accounts receivable aging report is a very important statement that is used to record data related to the debtors of a business. Here, we have provided a sample aging report that will help you draft one...
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Vertical Analysis
Vertical analysis is an integral part while carrying out the overall financial analysis of any firm. Here is more about how to do one.
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Purchase Order Sample
Want to know how to draft a purchase order? Learn how to buy an order sample for yourself, with the help of this article.
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Billing Statement Template
Notifying a customer about his balance and requests payment is the aim behind sending a billing statement. Read the following article that provides some useful information and a template for the same.
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Income Statement Format
How to prepare an income statement format which is easy to understand and update? Here's an article which will teach you the correct income statement format.
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What are Tangible Fixed Assets?
Tangible fixed assets is a term that is commonly used by people studying finance, economics and accountancy. Read ahead to know more...
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Comptroller Job Description
This article speaks about the comptroller job description, a career which is ' high in demand' because of the decent salary range and excellent career outlook.
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Benefits of Online Accounting Degree Programs
In this article, we will take a look at the prospects of enrolling for an online accounting program, along with some tips on the same. Have a look...
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