Tag: economics

Accounting profit refers to the total revenue of a business minus its explicit costs which are associated with running the business. These costs include operating expenses, cost of goods sold,…

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…

One of the most fundamental principles in accounting is the accounting equation which represents the relationship between the assets, liabilities and equity of a company.  The equation is expressed as…

Accounting refers to the systematic process of recording, analyzing, summarizing and reporting financial transactions of businesses or individuals. It is a method of tracking the income, expenses, assets and liabilities…

The term accelerator in economics is used to convey the accelerator principle. This theory suggests that there is a direct relationship between the changes in output or demand in the…

In economics, the acceleration clause is specifically in the context of finance and contract law is a provision in a loan agreement that allows the lender to demand immediate repayment…

Accelerated Depreciation is particularly used in the field of accounting and finance. It is a method of depreciating a fixed asset in such a way that higher amounts of the…

In the context of economics, absorption is a term which refers to the total amount of goods and services which are consumed by a nation. This includes domestic production as…

What is a Budget? A budget is a financial plan that outlines expected revenues and expenditures over a specified period, typically one fiscal year. It serves as a blueprint for…