- Corporate Accounting
What is the Profitability Index?
The Profitability Index is simply the profitability of an investment (dividend yield plus the expected growth rate of the investment’s market value) expre
- Financial Accounting Concepts
What are Contingent Assets and Contingent Liabilities?
Contingent Assets Contingent assets are those in which the likelihood of economic profit depends completely on future occurrences that cannot be controlled by t
- Financial Accounting Concepts
What is the Current Ratio and Current Ratio Formula?
What is the Current Ratio? The current ratio is a measure of the short-term financial liquidity of a business. It is the ratio of current assets to current liab
- Corporate Accounting
What are Debentures and Why Are They Issued?
Debentures are a type of corporate bond that is created by companies. The money borrowed to create debentures is called the face value. In exchange for the mone
- Financial Accounting Concepts
What is Change in the Profit Sharing Ratio in Partnership Accounts?
A change in the profit-sharing ratio in partnership accounts refers to the alteration in the distribution of profits among the partners. This can occur for seve
- Financial Accounting Concepts
Straight Line Method of Depreciation – Benefits and Limitations
Under Straight Line Depreciation, a fixed proportion of the original cost of the asset (less residual value) is written off each year so that the asset account
- Financial Accounting Concepts
Differences Between Accounting Concepts and Conventions
Although to a layman, both accounting concepts and accounting conventions may sound similar, there are some fundamental differences between them. There are a fe
- Cost Accounting
What is Performance Budgeting?
The process of performance budgeting entails evaluating an organization’s performance within the context of the organization’s particular objectives
- Corporate Accounting
What are Different Types of Financial Statements?
Financial statements provide essential tools for understanding an entity’s health and performance from various angles, whether you are an investor, credit
- Corporate Accounting
What Are Sweat Equity Shares and Why Are They Issued?
Sweat equity shares are equity shares granted to employees of a company on favourable terms in recognition of their work. Sweat equity shares are one form of sh