basic accounting includes revenues, expenses, assets, liabilities, income statement, balance sheet, and statement of cash flows. and debits and credits.
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 …
5 Steps of Financial Planning Process Financial planning is frequently considered as a method to manage debt, but a solid financial plan is a way to ensure financial stability throughout your life. Investing, retirement planning, insurance, borrowing and utilizing credit, tax planning, having a will, and ensuring the proper people receive your assets are all …
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 …
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, …
FIFO Method (First In First Out) The FIFO technique is distinguished in that the oldest purchase costs are transferred to the cost of products sold, while the most recent costs remain in inventory. We have lived in an inflationary economy for the previous 50 years, which implies that most prices have risen over time. When …
