Dividends are not considered an expense, because they are a distribution of a firm’s accumulated earnings. For this reason, dividends never appear on an i...

Another benefit of variable costing is that production managers cannot manipulate income by producing more or fewer products than needed during a period. ...

Additional Paid In Capital (APIC) is the value of share capital above its stated par value and is an accounting item under Shareholders’ Equity on the bal...

Essentially, incremental cash flow refers to cash flow that a company acquires when it takes on a new project. If you have a positive incremental cash flo...

Examples of property, which may be tangible or intangible, include automotive vehicles, industrial equipment, furniture, and real estate—the last of which...

Also known as pre-operative expenses, preliminary expenses are shown on the asset side of a balance sheet. The portion which is written off from the gross...

Advantages of management accounting Planning. The management can prepare the plan and execute the same for effective operation of business. Controlling. S...

Such a crime would carry a maximum fine of $1,000 or so, and a sentence of up to one year in the county jail. As the value of the property received increa...

A Letter of Credit (LC) is a document that guarantees the buyer’s payment to the sellers. It is issued by a bank and ensures timely and full payment to th...

Stockholders’ equity, also called owners’ equity, is the surplus of a company’s assets over its liabilities. Cash dividends reduce stockholders’ equity by...