Jurisprudence is the study and theory of law. It examines the principles, theories, and foundations that underlie the law. Jurisprudence is the systematic study and philosophical exploration of the Read more
CRM stands for Customer Relationship Management. It's a strategy or system that helps businesses manage interactions and relationships with both current and potential customers. CRM software enables Read more
Revenue recognition under the International Financial Reporting Standards (IFRS) is guided by IFRS 15, which outlines the principles for recognizing revenue from contracts with customers. It focuses Read more
Under International Financial Reporting Standards (IFRS), the Cost of Goods Sold (COGS) concept is similar to other accounting standards. COGS refers to the direct costs incurred in producing goods Read more
Certainly, here are some examples of costs included in the Cost of Goods Sold (COGS) for various types of businesses: Manufacturing Company: Raw Materials: Cost of materials used in Read more
Inventory can be classified into various types based on its nature, stage in the production process, or purpose within a business. Here are some common types: Raw Materials: Basic materials awaiting Read more
Closing stock, also known as ending inventory, refers to the value of goods or merchandise that a company still holds at the end of an accounting period. It represents the cost of inventory that Read more
Inventory valuation methods are used to determine the value of inventory on a company's financial statements. Here are the commonly used inventory valuation methods: First-In, First-Out (FIFO): This Read more
Procurement is the process of obtaining goods or services necessary for a company's operations. Here's an overview of the procurement process: Identifying Needs: Determining what goods or services Read more
Inventory management involves overseeing a company's inventory levels and processes to ensure optimal stock levels while minimizing costs. Standard procedures in inventory management include: Setting Read more
Analyzing the Cost of Goods Sold (COGS) can provide valuable insights: Gross Profit Margin: COGS is crucial in calculating gross profit margin (Gross Profit / Revenue). Monitoring trends in COGS Read more
Cost of Goods Sold (COGS) refers to the direct costs of producing goods or services that a company sells. It includes expenses such as raw materials, labor, and manufacturing overhead. Essentially, Read more
Accounting entries for revenue typically involve two common scenarios: Cash Sales: When a company makes a sale and receives immediate payment, the entry involves: Debit: Cash or Bank Account Read more
Analyzing revenue involves examining various aspects to understand a company's sales performance, market position, and potential growth opportunities. Here's how revenue analysis can be conducted: Read more
Here are a few revenue accounting examples: Product Sales: A company sells $10,000 worth of goods to a customer. Upon delivery, the company recognizes $10,000 in revenue, regardless of when the Read more
Revenue refers to the total income earned from a company's primary activities, typically the sale of goods or services to customers. The accounting treatment and reporting of revenue follow specific Read more
Financial statements are used by various stakeholders to make informed decisions about a company. Some primary users include: Investors/Shareholders: They analyze financial statements to assess the Read more
The financial statements - the Income Statement, Balance Sheet, Cash Flow Statement, and Statement of Shareholders' Equity - are interconnected and provide different perspectives on a company's Read more
The Statement of Shareholders' Equity is a financial statement that outlines the changes in a company's shareholders' equity over a specific period of time, typically a fiscal quarter or year. It Read more
The Cash Flow Statement is a financial report that outlines the cash generated and used by a company during a specific period, categorized into three main sections: Operating Activities: Cash flows Read more
A Balance Sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It consists of three main components: Assets: These represent what the Read more
An Income Statement contains various items that showcase a company's financial performance over a specific period. Here are some key components: Revenue/Sales: The total income generated from the Read more
Financial reports are documents that provide a snapshot of a company's financial performance. They typically include several key statements: Income Statement: Shows revenue, expenses, and Read more
Financial statements possess several qualitative characteristics that help ensure their usefulness, understandability, and reliability for decision-making. Some key qualitative characteristics Read more
Accrual accounting and cash accounting are two methods used to record financial transactions, and they differ in how they recognize revenue and expenses: Accrual Accounting: Records revenue and Read more