Tag: accounting

Acquisition in economics refers to the process by which one company takes over another company, either through the purchase of its shares or assets. It is a corporate strategy and…

The acid-test ratio, also known as the quick ratio, is a financial metric used to evaluate a company’s short-term liquidity position. It measures the ability of a company to pay…

Accumulated depreciation represents the total amount of depreciation expenses that have been recorded against a fixed asset over its useful life. It reflects the decrease in the value of a…

Accrued liabilities are financial obligations that a company has incurred during a specific accounting period but has not yet paid. These are expenses that have been recognized in the company’s…

Accrued income refers to income that has been earned but not yet received. It represents the revenues for goods delivered or services rendered where the payment has not yet been…

Accrued expenses are costs that have been incurred by a business during a specific accounting period but have not yet been paid. They are recognized in the financial statements for…

Accrual accounting is an accounting method where the revenue and expenses are recorded when they are earned or incurred regardless of when the cash transaction occurs. This method is different…

Accrual is a concept in accounting that refers to the recording of revenue and expenses when they are incurred regardless of when the cash transactions occur. This is a fundamental…

An accounting period is a specific and consistent duration of time that is used to record and compile financial transactions into financial statements.  The most common accounting periods include monthly,…

Accounting method refers to the specific rules and procedure which are used by a business to record its financial transactions and prepare its financial statements. There are two primary accounting…