Accrual accounting is a financial accounting method that allows a company to record revenue before receiving payment for goods or services sold and record expenses as they are incurred. In other words, the revenue earned and expenses incurred are entered into the company’s journal regardless of when money exchanges hands. Accrual accounting is usually compared […]
Accounts Receivable (AR) represents the credit sales of a business, which have not yet been collected from its customers. Companies allow their clients to pay for goods and services over a reasonable extended period of time, provided that the terms have been agreed upon. For certain transactions, a customer may receive a small discount for
Accounts payable (AP) is an accounting term used to describe the money owed to vendors or suppliers for goods or services purchased on credit. The sum of any and all outstanding payments owed by one organization to its suppliers is recorded as the balance of accounts payable on the company’s balance sheet, whereas the increase
Accounting statements and reports are key financial documents that businesses create and update periodically. These reports help businesses, investors and the government track different transactions and determine the financial health of the company. Learning about the significance and types of account reports can be important if you work in the banking, finance and accounting industry.
An accountant is a finance professional responsible for managing and interpreting financial records. Their primary role is to track, analyze, and report financial information for individuals, businesses, or organizations. Accountants ensure compliance with tax laws, regulations, and financial standards while helping their clients or employers make informed financial decisions. Types of Accountants Public Accountant: Works
Capital is a broad term that can describe anything that confers value or benefit to its owners, such as a factory and its machinery, intellectual property like patents, or the financial assets of a business or an individual. While money itself may be construed as capital, capital is more often associated with cash that is being put
General trade is the older of the two models, and was established before India opened its markets to organized retailing. Modern trade, on the other hand, is a purely urban phenomenon that grew in popularity between the 1990s and early 2000s, when many corporates and first-generation entrepreneurs entered the retail business. What is GT (General
Rent to Return is a financial model where a person or business rents an asset (such as machinery, equipment, or vehicles) for a specific period with the option or obligation to return it at the end of the term. This model helps avoid long-term ownership costs and is commonly used in industries like construction, manufacturing,
When starting a business, choosing the right structure is crucial. One of the most popular options is an LLP (Limited Liability Partnership). But what exactly does LLP Full Form mean ? In simple terms, an LLP is a hybrid business model that combines the flexibility of a traditional partnership with the limited liability of a
A loss leader pricing strategy, a term common in marketing, refers to an aggressive pricing strategy in which a store prices its goods below cost to stimulate sales of other, profitable goods. With such a pricing strategy, a business is selling its goods at a loss to lure customer traffic away from competitors. In contrast to predatory