Author: John

FOB Destination: Definition, Meaning, Accounting, Example, Importance

Companies purchase products from different sources, which requires using various transportation channels. One of these includes FOB destination. What is FOB Destination? FOB (free on board or freight on board) destination signifies a shipping agreement wherein the seller assumes the responsibility and cost of delivering goods to a specific destination. …

Conglomerate Merger: Definition, Meaning, Types, Examples, Advantages

In the business world, the term “Conglomerate Merger” has been making headlines recently – it’s a significant event where two big companies decide to join forces. These mergers have a massive impact on the economy, industries, and consumers. They often shake up the market, influencing competition and changing how businesses …

Contra Revenue: Definition, Accounting, Journal Entry, Example, Meaning

Companies sell products to increase revenues. However, some transactions may also decrease them while not directly stated on the income statement. The accounts for these transactions are contra-revenue accounts. What is Contra Revenue? Contra revenue serves as a mechanism in accounting to accurately portray a company’s net revenue by subtracting …

Quick Assets: Definition, Types, Examples, Importance, Meaning

Quick Assets play a key role in keeping things running smoothly for individuals and businesses alike. These assets are like instant helpers in times of financial need, readily available to cover sudden expenses or seize unexpected opportunities. Understanding what Quick Assets are and how they function can make a big …

Financial Statements for a Nonprofit

Nonprofits must follow a reporting structure that differs from other businesses and companies. The primary difference comes from the reports. The financial statements for nonprofits include the statement of financial position, statement of activities, statement of cash flows, statement of cash flows, and notes to financial statements. What are Financial …

Relevant Cost: Definition, Meaning, Types, Importance, Example

Companies often encounter situations where they have to choose one of several options. When considering these, they must look at various aspects. Usually, companies use relevant costs to determine the best choice among those. What is Relevant Cost? Relevant cost, within managerial accounting, encompasses future-oriented expenses and incomes crucial for …