Accounting

learn the basics to advance accounting include revenues, expenses, assets, liabilities, income statement, balance sheet, and statement of cash flows, and more

Working Capital

Working Capital

Working Capital Definition of Working Capital: The word working capital refers to the amount of capital that a company has readily available. That is, working capital is the difference between cash or quickly convertible into cash resources (Current Assets) and organizational obligations for which cash will be required shortly (Current Liabilities). Current assets are resources …

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Sensitivity Analysis

Sensitivity Analysis

Sensitivity Analysis The study of how a change in the output of a model (numerical or otherwise) may be allocated, qualitatively or statistically, to distinct sources of variance is known as sensitivity analysis. A mathematical model is described as a set of equations, input factors, parameters, and variables that are used to characterize the process …

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LIFO (Last in First Out)

LIFO (Last in First Out)

LIFO (Last in First Out) One of the most important and controversial flow assumptions is the LIFO method. The LIFO method is based on the basic assumption that the most recently acquired units are sold first and that older units remain in inventory. This notion opposes the physical movement of goods in most firms. However, …

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