by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Activity Based Costing? The ABC (Activity Based Costing) method of cost accounting pertains to a company’s resource-consuming activities that create costs. It uses physical, monetary and non-monetary indicators to measure these costs and assumes a...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Accounts Receivable (AR)?Accounts receivable refers to the balance of money owed to a firm for goods or services that the company allowed its customers to purchase on credit. These are the outstanding invoices that a company possesses. In the balance sheet of...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Cash Basis Accounting?The cash method is used by individuals. The substantial difference lies in the time period to which costs and revenues are attributed. The US tax period is one year with a pre-determined beginning and end date. Most individuals and...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Normalized Financial Statements?The non-recurring expenses and revenues of a company are adjusted to get a real picture of the company’s financial performance. This adjusted financial statement is known as the normalized financial statement. The...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Net Cash Flow?Net Cash flow is the difference between the cash inflow and cash outflow of a company in a given period of time. It is useful for measuring the short-term financial viability of a business. If a company continues to maintain the positive net cash...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Net Book Value?In accounting, the book value of an asset is its written down value in the balance sheet after deducting the accumulated depreciation from its purchase cost. The book value of a company is the net worth of the company calculated by deducting the...
