Accounting

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

What is Bad Debt

What is Bad Debt

What is Bad Debt When items are sold on credit, the company assumes the risk that some of the clients will never pay for the goods. Bad debt occurs when a debtor fails to pay the amount owed to him. This is a loss incurred as a consequence of a normal course of business risk. …

What is Bad Debt Read More »

What is Gross Profit Ratio

What is Gross Profit Ratio

What is Gross Profit Ratio The Gross Profit ratio informs the company’s management about its profitability. It informs the company’s management about the company’s production costs. When management compares it to the prior year’s ratios, it learns how well the firm did and how to enhance its efficiency even more. The Gross Profit Ratio provides …

What is Gross Profit Ratio Read More »

Classification of Expenses

Classification of Expenses

Classification of Expenses Each sort of expense is assigned to a distinct account. As a result, huge corporate organizations may have a significant number of accounts in their records. As the profit and loss statement is a summary of the organization’s profitability. For reporting purposes, similar accounts should be grouped. What are the Four types …

Classification of Expenses Read More »

What is Stock in Accounting

What is Stock in Accounting

What is Stock in Accounting? Stock Definition: The quantity of unsold commodities held by the organization is referred to as stock. Or The definition of stock in accounting is “the quantity of ready-to-sell items available to the company.” Types of Stock Stock is classified into two classes for accounting purposes: Opening Stock: The value of …

What is Stock in Accounting Read More »

error: