by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Generally Accepted Accounting Principles?Generally accepted accounting principles (GAAP) is an embodiment of rules and standards that are acceptable and practiced in the accounting industry. GAAP contains a set of accounting standards, principles, and...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Cash Flow?Cash flow (CF) simply refers to the flow (inflow and outflow) of cash within the operations of an organization. Cash flow have different meanings attributed to it across businesses and organizations. The performance of a company is not a good measure...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Cash Conversion Cycle?A Cash Conversion Cycle (CCC) is a cash flow calculation that measures the number of days that it takes for a company to realize cash flows from sales after the conversion of its investments in inventory and other resources. It is a...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Cost of Goods Sold (COGS)?Before the end result of any production or manufacturing is attained, funds and other factors of production must be involved. Cost of Goods Sold (COGS) refer to the total costs of the production of goods that a company puts up for...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Capital Reserves?A capital reserve refers to a specific fund or amount set aside to cater for future or unpredictable expenses or losses of a company. It is an account on a company’s balance sheet put aside to settle financial emergencies or capital...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a T-Account? Financial reports that use the double-entry bookkeeping method are referred to as T-Account informally. The appearance of the book keeping entries resembles the letter T, hence the moniker. Its a ledger account that has the account title at the...
