by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Accounting Theory?An accounting theory is a notion that uses speculations, methodologies, and frameworks in the study of financial reporting (as well as how financial reporting principles are applied in the accounting industry). Basically, accounting theories...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is an Accounting Valuation?Accounting valuation is the valuation of a company’s assets and liabilities for the purpose of financial reporting. Assets owned by a company and the liabilities accrued over a certain period of time must be correctly valued and...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is an Accounts Payable Subsidiary Ledger?An accounts payable subsidiary ledger is an account book that tracks all expenses of a business and the number of suppliers that the business owes. This ledger shows the transaction history of a particular business and the...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Accounts Payable Turnover Ratio?The amounts payable turnover ratio of a company is the rate at which a company pays the debts that it owes its suppliers or vendors. This ratio is a short-term, liquidity ratio that measures the number of times a company...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is an Accounting Standard?An accounting standard refers to a set of guidelines, rules and principles set up by a regulatory board or the government that serves as framework for accounting policies and practices. In the United States, generally accepted accounting...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Absorption Costing?Absorption costing is a costing method in which all costs attributed to the production of a product are estimated. This costing method entails a full estimation of total expenses incurred in manufacturing a product. Direct costs such as...
