Accounting Conventions
Accounting Conventions are the basic guidelines for the implementation of accounting rules & regulations. Accounting conventions are very important which provide guidance to accountants to report everything which is necessary, use similar methods of calculations for same events, disclose completely before company. Accounting conventions guides the companies and accountant while preparing financial statements.
Optimal Currency can be defined as the single currency that can do wonders in terms of transactions and economies in a certain geographical area. As well all know that different countries of the world have their own specific currency that is completely different from
Takeover Bid is an action that can be defined as the process of taking over a company by another company or a business entity. In this process the acquiring company encourages the shareholders of the target company to sell the share of the target
Offset Mortgage as the name indicates is the type of the mortgage that has an additional offset attached to it. In order to explain offset mortgage we can say that it is a traditional mortgage along with one or more deposited accounts attached with
Offensive competitive strategy is a corporate strategy where the company or the business entity tends to pursue the changes in the market in a vigorous and active manner. The major objective behind this strategy is to adopt the changes in the market in a
Over leveraged is an accounting term and in actual it is a financial condition of a business entity or a company where the business is carrying too much debt over it. The amount of debt on the business is intense that the business is
Overcapitalization means over capitalizing the assets of a company or a business entity. Overcapitalization occurs when a business entity issues more debt and equity as compared to the total worth of its entire assets. An overcapitalized company has to pay more in terms of
Actuarial Analysis can be defined as the examination, measurement, estimation or determination of the degree of risk involved in a certain project by a highly educated, professional and experienced statistician. The major objective of the Actuarial analysis is to measure the risk associated with
Sampling distribution can be defined as a probability distribution of the statistics that is derived by drawing a large number of samples from a specific and particular population. There are a number of different frequencies within a sampling distribution that indicate a number of
Sampling is a process of statistical analysis. In the process of sampling a predefined number of observations are taken from the total overall population to perform test, take observations, take notes and view trends. There are a number of different methodologies to collect a
A liquid asset can be defined as an asset that can be converted into cash with a quick action and the impact to the price of the asset is quite minimal that helps in avoiding loss. Liquated assets are regarded and treated as cash
Economic derivative is a new form of the derivative contract that is completely differs from those traded in early 2002. The economic derivative depends upon the future value of some national economic indicator such as the index of the purchasing manager, the level of
A stop loss order can be defined as an order that is placed with a broker to sell the security when it reaches at a certain price. As the name indicates the objective of the stop loss order is to limit the loss of
Offering price can be defined as the price that is offered for the publicly issued securities. These publicly issued securities are presented for purchase by the investment banks underwriting the issue. The offering price of a publicly issued security also includes the fee of
Accounting control are the methods and practices that are implemented by an organization or a business entity to help in ensuring the validity and the authenticity of their own financial statements that are issued by the business. The accounting controls are a sort of
Absolute performance standard can be defined as the way to measure the performance of an organization or a business entity in its respective area of activity. Absolute performance standard is an indicator that indicates how well and how efficiently a business is conducting its
Absolute Interest can be defined as total and complete ownership of the entire asset or property or single asset or property of a business. The owner having absolute interest has the complete possession of property or a certain asset and the owner has the
A saving account is a deposit account of an individual or a business entity that holds the principle security and earns a modest rate of interest over the principle amount after a decided time span or accounting period. Sometimes depending upon the type and
Accounting postulate can be defined as a fundamental and basic assumption in the field of accounting. Accounting postulate can be described as underlying axioms that are the biases of all the further assumptions, calculations and decisions in the field of accounting. Accounting postulates can