Cost accounting is defined as ” the process of accounting for cost which begins with recording of income and expenditure or the basis on which they are calculated & ends with the preparation of periodical statements and reports of ascertaining…
Risk management is the art of using lessons from the past to mitigate misfortune and exploit future opportunities. In other words, the art of avoiding the stupid mistakes of yesterday while recognizing that nature can always create new ways for…
Cash flow statement provides relevant information in assessing a company’s liquidity, quality of earnings and solvency. Further, cash flow statement is a summary of cash payments and receipts. Information about cash flow is useful in providing users of financial statements…
Adjusted Present Value is used in evaluating foreign project. The adjusted present value model is additive approach to capital budgeting process . In brief, each cash flow is considered individually & discounted at a rate consistent with risk involved in…
Now a days many of us use bank locker facility for safe custody of jewelry and important documents. If you have bank locker or planning to open new locker then you must know the RBI new guidelines. Reserve bank of…
The commercial bill is instrument drawn by a seller of goods on a buyer of goods. A Commercial bill is one which arises out of a genuine trade transaction, i.e. credit transaction. As soon as goods are sold on credit,…
Right issue is an issue of rights to a company’s existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings, within fixed period of time. What is right issue as per…
Bonus issue means an issue of additional shares to existing shareholders free of cost in proportion of their existing holding. What are bonus shares? It is defined as issue of shares at no cost to current shareholders in a company…
Commercial paper (CP) ha its origin in the financial markets of America and Europe . The concept of CPs was originated in USA in early 19th centaury when commercial banks monopolized and charged high rate of interest on loans and…
ABC analysis in cost accounting is an accounting methodology that assigns cost to activities rather than products or services. This helps resources & overhead costs to be more accurately assigned to products & services that consume them. Meaning and definition…