An exposure draft (ED) is a preliminary version of a document that is distributed by an organization for the purpose of soliciting feedback from stakeholders. The feedback is used to improve the document before it is finalized. Exposure drafts are often used by organizations when they are developing new accounting standards or when they are … Read more
The term “backlog” refers to the amount of work that has been accumulated by a company but has not yet been completed. This can be in the form of orders that have been placed but not filled, or work that has been started but not finished. Backlog can also refer to the amount of money … Read more
A cash transaction is a type of financial transaction in which cash is exchanged between two parties. The most common type of cash transaction is a purchase or sale of goods or services for cash. Other types of cash transactions include loans, investments, and donations. In a cash transaction, the buyer and seller exchange cash … Read more
Working Capital Turnover Ratio: Meaning, Formula, Example Is working capital an asset? Yes, working capital is an asset. Working capital is defined as the difference between a company’s current assets and current liabilities. This figure represents the resources that a company has available to generate revenue and meet its short-term obligations. Current assets include cash, … Read more
A tangible cost is a cost that can be physically seen or touched. This type of cost is often incurred in the manufacturing or production process of a good or service. Tangible costs can also include the cost of raw materials, labor, and overhead expenses. Are tangible assets current assets? Tangible assets are not current … Read more
. Internal Audit: Its Definition, Different Types, and the 5 Cs What is the term accounting? The term “accounting” refers to the process of tracking, recording, and summarizing financial transactions to provide information that is useful in making business decisions. Accounting information is used in financial planning, budgeting, and decision-making. The three main types of … Read more
How It Works and Examples. National income accounting is a method used by economists to track the production and distribution of income within a nation. It provides information on the overall level of economic activity and how that activity is divided among different sectors of the economy. National income accounting can be used to measure … Read more
The book balance is the ending balance in the checkbook register after all checks and deposits have been recorded. The book balance should agree with the balance shown on the bank statement. If there is a discrepancy, it may be due to outstanding checks or deposits, or to errors in recording transactions. What are the … Read more
An adverse opinion is a formal opinion issued by an auditor when they believe that a company’s financial statements do not give a true and fair view of the company’s financial position. In an adverse opinion, the auditor will state that they do not believe that the financial statements give a true and fair view … Read more
. The average cost method is a way of calculating the cost of goods sold (COGS) for a company. The average cost of goods sold is calculated by taking the total cost of goods sold divided by the number of units sold. For example, if a company sold 100 units of product X for a … Read more
