basic accounting includes revenues, expenses, assets, liabilities, income statement, balance sheet, and statement of cash flows. and debits and credits.
Bill of Exchange Definition: A bill of exchange is a legally binding agreement between two parties to pay a fixed sum of cash to the other party on a certain date or on-demand. It is often extended with credit periods, such as 90 days. In addition, for a bill of exchange to be legitimate, it …
Balance of Payment (BOP) The balance of payments (BOP) is a report of all transactions that take place between entities in one country and the rest of the world during a certain time period, such as a quarter or a year. The balance of payments of a nation indicates if it funds enough to cover …
The Cash Flow Statement The cash flow statement or the statement of cash flows is a financial statement that summarizes the amount of cash and cash equivalents entering and exiting a business. A cash flow statement is a financial statement that summarizes all cash inflows received from an organization from operating activities and external investment …
What is the Time Value of Money The principle of the time value of money (TVM) states that the money you have today is worth more than the same amount in the future due to its possible earning power. This fundamental financial theory states that since money will collect interest, every sum of money is …
What is Inventory Valuation Inventory valuation is an accounting method used for businesses to determine the value of unsold inventory stock when making financial statements. Inventory stock is an asset for a company, and it must have a financial value in order to be recorded on the balance sheet. This value will assist you in …
