Income taxes are imposed by the government on individuals and businesses in their jurisdictions. Governmental bodies tax profits made by businesses and individuals. The rates of taxation vary depending on…
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An accountant’s job description is to help businesses make crucial financial decisions. This is done through a variety of tasks that include collecting and tracking finances for the company. They…
Accrual accounting is an accounting method used by companies. The accrual method has a two-fold definition in the financial world. It allows a company to record revenue from goods or…
In accounting, the matching principle is used for recording revenue and expenses. The process records expenses alongside the earned revenues. The matching principle demonstrates how businesses incur expenses to earn…
Credit refers to a person’s borrowing capacity. It considers your history of debts and defines how much you can borrow cash or access goods and services. If you have a…
The cost of operating a business is known as a direct cost and includes things like production cost, raw material cost, and wages paid to factory staff. Direct costs can…
The chart of accounts lists all the financial accounts included in the financial statements of a company. It gives a way to categorize all the financial transactions that a company…
A cash flow statement is also known as a statement of cash flows, it is a financial statement that shows how changes in the balance sheet affect cash and cash…
Capital expenditures are the funds used by a company to purchase assets or to upgrade and maintain physical assets such as property, plants, buildings, technology, or equipment. Capital expenditures are…
Current assets represent all assets of a company anticipated to be sold, consumed, used, or exhausted through standard business operations in one year. They appear on balance sheets (one of…
