Accounting

A discretionary account is an investment account that enables an approved broker to purchase and sell securities for each trade without the consent of the…

The practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers to achieve the goals of an organization is managerial accounting (also known…

The Percentage of Completion (POC) is an accounting method which on the basis of the proportion of work done, measures the continuing identification of income…

The Completed-Contract Method (CCM) is an accounting method that allows taxpayers and companies, even though cash payments have been given or obtained during a contract…

An Inventory write-down is an accounting procedure that is used to exhibit the discount of an inventory’s value, required when the inventory’s market price drops…

Written-down value is the value of an asset after paying for depreciation or amortization, also known as the Reducing Balance or Reducing Installment Method or…

A fully depreciated asset is an asset or fixed asset of a plant where the book value of the asset is equal to the approximate…

Limitation of Historical Cost Accounting (HCA) Historical Cost Accounting (HCA), records transactions appearing in both the balance sheet and the profit and loss account in…

Tax depreciation is the depreciation which under the applicable tax laws, may be reported as an expense on a tax return for a given reporting…

Methods of Accounting for Price Level Changes Accounting for price-level changes also referred to as inflation accounting is a financial reporting procedure that records the…

Incremental cash flow (ICF) is the extra cash inflow created by the company from investing in any particular project. If it takes on a new…

Objectives of Accounting for Price Level Changes The general tendency in changes in prices of goods and services over time is called price level. The…