Accounting Conventions
Accounting Conventions are the basic guidelines for the implementation of accounting rules & regulations. Accounting conventions are very important which provide guidance to accountants to report everything which is necessary, use similar methods of calculations for same events, disclose completely before company. Accounting conventions guides the companies and accountant while preparing financial statements.
Revenue Forecasting is very important in order to see the future growth and expansion of the company related to the revenue and expenses of the firm. With the help of revenue forecasting a firm can make important decisions regarding the operations and staffing of
A redundant asset is a type of asset that generates some income for the company but it is not linked directly to the everyday operations of a company. Example OF Redundant Asset Another name that is given to the redundant asset is the non-operating
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
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
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
The net payoff can be defined as the total loss or profit occurred to an individual or a business entity received after the sale of a product when the cost of production and the accounting losses have been subtracted from the total sales of
The market discount can be defined as the discount offered on the bonds in secondary market. Market discount is actually the difference between the stated redemption price of the bond and the purchased price of the bond that is actually offered in the secondary
Over and short is a term that is used in the accounting scenario that means the actual difference between the estimated and the actual figures of production, financial figures or any other estimates. Another definition of over and short can be given as the
Unrestricted cash as the name suggests is the cash that is not associated or tied to a particular use within or outside the business entity. Unrestricted cash is not restricted to any particular purpose and it is taken as an instant reservoir of the
Direct bidder is a bidder that bids in an auction of the treasury securities and buys securities for the house account instead of buying them for any other party. There are a number of different examples of direct bidders such as primary dealers, non-primary
Bid Wanted as the name indicates is the invitation of the bids from an investor that holds a certain security and wants to sell the security. In bid wanted scenario the investor or the security holder tells the interested parties that he or she
Quantitative analysis can be defined as a financial tool of analyzing business, methods, strategies and behavior by using complex mathematical formulas, statistical standards, research and measurement. In quantitative analysis all the variable of interest are assigned a mathematical value and then different mathematical functions
A qualified dividend can be defined as a dividend that qualifies for the deduction of the tax. The reason behind why the dividend qualifies for the deduction of the tax and is labeled as qualified dividend is that it has capital gains that make
Pooling of interest can be defined as an accounting method of combining balance sheets of two different business entities or two different corporations together at the point of merger or acquisition. Pooling of interest is a method that allows companies to combine their balance
Operating income before depreciation and amortization is abbreviated as OIBDA and it is a non GAAP measure of the performance of the business entities and corporation to show the degree of profitability in occurring business practices and business activities. OIBDA is a financial measure
The Accounting Standards Executive committee is a group that is responsible for designing and implementing policies regarding financial presentations and reporting. In reality the Accounting Standards Executive committee is the new name given to the former senior technical organization that worked within the American
Accounting valuation process is the process of evaluating the assets of a firm or a business entity for a financial reporting purpose. The assets of the firm are evaluating by using a number of valuation techniques in order to analyze and report them in