A supply chain is a common term when it comes to business operations. It encompasses all the activities that are required to deliver a product or service from the source of raw materials and suppliers, through production, packaging, and distribution, ultimately to the customer. A successful supply chain can lead …

The accrual concept is an accounting principle that focuses on recording transactions when they occur rather than when cash is received or paid. It recognizes revenue when qualified as earned and expenses when incurred, regardless of the timing of cash flows. It ensures that financial statements provide a more accurate …

The income statement is a financial document that presents a company’s financial performance over a specific period. Companies use a structure provided by the accounting standards to prepare income statements for external reporting. However, they may also use the same format for internal reporting. The variable costing income statement is …

To generate more money in the economy and make it easier for businesses to operate, deregulation is known as one of the major economic changes that have been implemented in many countries. Deregulation involves removing or reducing government regulations on an industry or sector, allowing businesses to operate with fewer …

Accounting is the process of recording, summarizing, analyzing, and communicating financial information about an organization’s economic activities. It includes many branches. Two of the most common ones include cost and financial accounting. What is Cost Accounting? Cost accounting is a specialized branch of accounting that focuses on tracking, analyzing, and …

Comparative advantage is a fundamental concept in the field of economics. It’s an important concept when looking at international trade as well as domestic trade. Products that are produced at lower cost in one country compared to another, are said to have a comparative advantage. This can be an important …

Accounting follows principles crucial in dictating the treatment of various transactions. Two of these principles include matching (or revenue recognition) and accruals. The matching principle states that expenses should get recognized in the same accounting period as the revenues they help generate. On the other hand, the accruals principle states …

Management theories serve as essential tools for navigating the complex world of organizational leadership. Different strategies, frameworks, and guidelines have been made to help organizations solve their problems. Successful professionals don’t just use one management theory. They pick the ideas that fit their team and company from different theories. Multiple …

Companies prepare financial statements to provide crucial information about their finances. One of these includes the statement of financial position. It is often the first financial statement presented on the annual report for any company. What is the Statement of Financial Position? The Statement of Financial Position, or the Balance …

Companies may offer many types of discounts to their customers. These discounts come with various objectives, for example, encouraging customers to buy more or pay promptly. In accounting, discounts fall into two categories, trade and cash discounts. People often confuse the two. Trade discounts usually occur before the latter. What …