Daily Archives: November 7, 2019

Fundamental Accounting Assumptions

Fundamental Accounting Assumptions Fundamentals accounting assumptions are the underlying assumptions that are presumed to have been followed while preparing the financial statements. There are three fundamental with regard to accounting assumptions: Going concern Consistency Accrual If there is nothing mentioned about the fundamental accounting assumptions in the financial statements then …

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Trend Analysis – Meaning and Example

Trend analysis

Trend analysis is the process of analysis the financial statements by the computing trend of series of information. With the help of trend analysis tool, we determine the directions upward or downward and computation of the percentage relationship that each statement item bear to the same item in the base …

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Standard Costing and Budgetary Control

standard costing and budgetary control

Both standard costing and budgetary control achieve the same objective of maximum efficiency and cost reduction by establishing a predetermined standard, comparing actual performance with the predetermined standard and taking corrective measures, where necessary. Thus, although both are useful tools for the management in controlling cost, they differ in the …

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