Tag Archives: accounting
Balance sheet – What is Balance sheet in accounting?
Image by/from RaphaelQS In financial accounting, a balance sheet or statement of financial position or statement of financial condition is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as Government or not-for-profit entity. Assets, […]
Continue readingDepreciation Of Fixed Assets`
In accountancy, depreciation refers to two aspects of the same concept: first, the actual decrease in value of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wears, and second, the allocation in accounting statements of the original cost of the assets to […]
Continue readingFixed investment
Fixed investment in economics is the purchasing of newly produced fixed capital. It is measured as a flow variable – that is, as an amount per unit of time. Thus, fixed investment is the accumulation of physical assets such as machinery, land, buildings, installations, vehicles, or technology. Normally, a company balance sheet will state both […]
Continue readingIntroduction To Fixed Cost
In economics, fixed costs, indirect costs or overheads are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related, such as interest or rents being paid per month, and are often referred to as overhead costs. This is in contrast to variable costs, […]
Continue readingWhy Is The Going Concern Concept Important In Accounting?
A going concern is a business that functions without the threat of liquidation for the foreseeable future, which is usually regarded as at least the next 12 months. “Going concern” implies for the business the basic declaration of intention to keep operating its activities at least for the next year, which is a basic assumption […]
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