Basics of Accounting - QS Study
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How many Branches of Accounting?

There are seven branches of accounting:- a) Financial Accounting: This is called original accounting, which is mainly confined to the preparation of financial statement for......

What is a Subsidiary Ledger?

A ledger is a book or database in which double-entry accounting transactions are stored or summarized. A subsidiary ledger is a ledger designed for the storage......

What is Cost Constraint?

A cost constraint is a situation in which the cost of a good or service can negatively impact the decision to purchase said good or......

What is Cash Turnover Ratio?

The cash turnover ratio is used to determine the proportion of cash required to generate sales. The ratio is typically compared to the same result......

What is a Trial Balance Worksheet?

A trial balance worksheet is a multi-column spreadsheet that contains the ending balances of all general ledger accounts used by a business. The worksheet is......

What are Fixed Charges?

Fixed charges are overhead costs that are not closely associated with activity levels. That is, these costs will likely be incurred by a business even......

What is Cost Management?

Cost management is the control of actual or forecasted costs incurred by a business.  Cost management is the process of effectively planning and controlling the......

What is Inventory Analysis?

Inventory analysis is the examination of inventory to determine the optimum amount to keep on hand. Traditionally, this has been done by balancing the costs......

What is the Difference between Gross Margin and Net Margin?

Gross margin is the difference between revenues and the cost of goods sold, which leaves a residual margin that is used to pay for selling......

What is Coverage Ratios?

Coverage ratios are used to evaluate the ability of a business to meet its debt obligations. These ratios are most commonly used by lenders and......

What is Virtual Close?

A virtual close involves the use of fully integrated company-wide accounting systems to produce financial statements at any time, on demand. This approach requires not......

How do you Collect Past Due Invoice?

A past due invoice is a billing that has not been paid as of its due date. If a business extends credit to its customers,......

What is the difference between Gross Margin and Operating Margin?

Gross margin measures the return on the sale of goods and services, while operating margin subtracts operating expenses from the gross margin. These two margins......

What is Leverage Ratios?

Leverage ratios is used to determine the relative level of debt load that a business has incurred. These ratios compare the total debt obligation to......

What is Cost Object?

A cost object is any item for which costs are being separately measured. It is a key concept used in managing the costs of a......