Management Accounting
Paid in Capital can be defined as the fund that is raised by the business through shareholder equity and not from the other business operations such as sales and services. Paid in capital is comprised of the amount or cash that is paid by
Leveraged Buyout is a process of acquisition in which the acquiring company uses a large amount of borrowed money in order to acquire the other company. The borrowed money is used to bear the cost of the acquisition and it may include bonds and
Tangible common equity ratio is a financial figure that is used to show financial stability of a bank or some other financial institute. This figure show the amount of loss a bank or other financial institute can bear before the entire stockholder equity is
Accounting postulate can be defined as a fundamental and basic assumption in the field of accounting. Accounting postulate can be described as underlying axioms that are the biases of all the further assumptions, calculations and decisions in the field of accounting. Accounting postulates can
Controlled disbursement is cash controlling and cash management technique that is employed at the corporate sector of the market. With the help of controlled disbursement the corporate sector regulates and checks the flow of cheaques between the business and the banks. This process is
Debt Service Coverage ratio is a financial term that means the total amount of cash flow that is available to pay off the annual interest and principle payments accumulated on business debt within a certain accounting period. This amount of cash flow also included
Book value of equity per share is a financial figure that represents the minimum value of a company’s equity with perspective of per share assessment of the company. In order to calculate this value the original value of the common stock of a company
Relative Strength index is an indicator of strength and momentum within a business that is used to compare the weight age of recent profits to the weight age of recent losses. These profits and losses are related to an asset and are compared in
As we all know about the ledger it is an accounting book in the double entry system that is used to record and maintain transactions for a business. There are different types of ledgers one of them is subsidiary ledger that is used to
A purchase ledger can be defined as a sub ledger in business accounting that is used to record all the purchases made by the business in that accounting period. The entire amount that a business is spending and transacting with its supplier is aggregated
A sales ledger is an accounting document that displays a complete itemization of all the sales made by the business along with presentation of these sales in the respective date sequence. Sales ledger also addresses credit issues such as product returns by the customers
Permanent current assets are the minimum amount of current assets required by the business to smoothly run its current business operations. These are the current assets that are used for a shorter span of life and usually replaced by other current assets during a
Percentage lease is an accounting concept that is associated with a leased space at which a company or any entity is doing its business. We all know whenever a business acquires premises for doing business activities on lease it has to pay a rent
Overhead ratio is the ratio that is directly related to the operating expense of the business. Operating expenses are the expenses that occur during the day to day routine of the business. We cannot compare operating expense directly to the operating income of the
A fixed budget is the financial plan designed and implemented by the management that is not changed or altered throughout the accounting and budgeting period. It remains same and uniform even if the level of activity changes within the business. However in actual situation
There are a number of accounting issues that are involved in a manufacturing businesses that are absolutely absent from the accounting procedures of the other companies. The accounting procedures involved in a manufacturing business can be explained as under:- Inventory Valuation Inventory valuation means
High-Low Method is used in cost accounting to discern or differentiate the fixed and the variable costs portions from the total cost figure. The high low method is usually used for the mixed costs. A mixed cost is the type of cost that includes
Quality of conformance is a concept to calculate the degree of completion of the product. It is the ability of the product or service to meet its specific and ultimate design. The design of the product is the interpretation of what a customer wants