Margin safety
Margin safety- Margin safety refers to the level of financial cushion or security that an individual or business maintains to cover unexpected or adverse events. It is essentially a measure…
PRINCIPLES OF ACCOUNTING
Breakeven point
Breakeven point- The breakeven point is a fundamental concept in business and finance that represents the level of sales or revenue at which a company's total costs equal its total…
Calculation of P/V ration
Calculation of P/V ration- The Profit-Volume (P/V) ratio, also known as the contribution margin ratio, is a financial metric used to analyze the relationship between a company's profits and its…
Depreciation
Depreciation- Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. Tangible assets can include things like buildings, machinery, vehicles, and equipment.…
Outstanding expenses and income
Outstanding expenses and income- Outstanding expenses and outstanding income are financial concepts that relate to transactions that have occurred but have not yet been recorded in a company's financial statements.…
Prepaid expenses
Prepaid expenses- Prepaid expenses are a type of accounting asset that represents payments made for goods or services that a company will receive in the future. These expenses are initially…
Closing stock
Closing stock- Closing stock refers to the value of goods or inventory that a business has on hand at the end of a specific accounting period, such as a fiscal…
Final Accounts(Trading profit and loss A/C and balance sheet) with adjustments
Final Accounts(Trading profit and loss A/C and balance sheet) with adjustments- Creating final accounts, including the Trading Profit and Loss Account and Balance Sheet, involves summarizing a company's financial transactions…
Double column cash book
Double column cash book- A double column cash book is a type of financial record used in accounting to track cash transactions for a business. It is called "double column"…
Single column
Single column- "Single column" is a term that can have different meanings depending on the context in which it is used. Here are a few possible interpretations: Data Table: In…