Management Accounting
Credit utilization rate can be defined as a calculation that is done to calculate the individuals total debt balance to the total available credit with the individual. Calculation of Credit Utilization Rate Credit utilization rate can also be termed as the credit utilization ratio
There are certain limitations in the financial accounting due to which most of the accounting professionals switched to the cost accounting. The first and the foremost limitation of the financial accounting is that it is inadequate and inefficient in terms of the information required
Final Accounts are the accounts that are prepared to find the final estimate of the profit and loss of a company for a certain accounting period. Final accounts are used to describe the final position of the business. Final accounts are the accounts that
There are a number of advantages and disadvantages of a single entry system that can be described as under:- Advantages of Single Entry System Single entry system is easy to understand and it is simple to maintain and keep it on its track. There
The concept of going concern is an accounting concept that assumes that each business entity or the company is a going concern. By going concern we mean that the company is going to keep its business running and is able to do so. The
Historical cost can be defined as the value of the resource given up or the liability that incurred at the time when the resource was given up. The liability may incur in order to acquire the asset or the service when the resource was
Assets under Management Asset under management can be defined as the total market value of the investment of the company that is made by the company in the market and are managed through mutual funds, money management fund, portfolio management firms, hedge fund and
Load fund can be defined as the type of the mutual fund that carries a fee to sell and purchase the shares of the company. This load can be expressed in the form of the percentage of the total amount invested by the company.
Book Value can be defined as the total worth of the company in case of liquefying of its assets in order to pay back its all liabilities. Another definition of the book value is the value of a particular asset on the balance sheet
Back flush costing is a costing method in accounting in which the cost associated with the production of goods is only recorded when the goods are actually produced, finished or sold. In this method of costing the goods or the products that are not
Foreign debt can also be defined as the external debt and it is categorized as a debt or the part of the total debt that is hold for the foreign investors or foreign buyers. The foreign buyers are the buyers that don’t belong to
Floating Interest Floating interest rate can be defined as an interest rate that is not constant and it changes from time to time. How Floating Interest Rate Works Let’s assume that a person ABC wants to start a business and borrows a loan of
What is Capital Expenditure ? Capital expenditure can be defined as the amount of money or the amount of expense that a company uses to purchase, upgrade, improve or extend the life and the performance of its long term assets. Capital expenditure is usually
Headline Earnings Headline earnings of a company can be defined as the earnings that are solely based on operational and capital investment activities of a business. All the other incomes such as income incurred due to staff reductions, assets sale and accounting write downs
Net Investment Net investment can be defined as the measure of the company’s ability of investing in capital assets. The examples of the net investment can be exemplified as property, plants, equipment, machines and software. Formula of Net Investment The formula of net investment
Cost of goods sold can be described as a direct expense that associated with the production of the goods with a production plant or a factory. Cost of goods sold of a company is listed in the income statement of the company. Cost of
Future contract is a type of contract that allows or gives an obligation to the buyer to purchase an asset at some future point at a predefined set price. The assets that are traded over a future contract include commodities, stocks and bonds. Natural
Transaction risk is a risk that a company will face regarding the losses that will incur due to the money loss in a transaction occurring in multiple currencies due to some exchange rate movements. Most of the companies that are involved in the transactions
