ACCOUNTING

Sure, there are many definitions for the word “debit.” Here are a few examples: General Definition: Debit refers to a decrease, reduction, or loss. It also refers to a sum of money owed to a particular account or person. Specific Examples: Debit card: A card used to make purchases on credit, usually referred to as […]

Definition: The quartile is a measure of quantile that divides a set of data into four equal parts, called quartiles. Explanation: First Quartile (Q1): The value that 25% of the data falls below. Second Quartile (Median): The value that 50% of the data falls below. Third Quartile (Q3): The value that 75% of the data […]

Revenue Recognition Principles Revenue recognition principles are accounting principles that guide companies in recognizing revenue at the appropriate time and amount. These principles ensure consistency and comparability of financial statements across different companies. Generally Accepted Accounting Principles (GAAP) Revenue Recognition Principles: 1. Accrual Basis: Revenue is recognized when it is earned, regardless of when payment […]

The Fixed Capital Index (FCI) is a measure of industry capital spending in the United States that is used to gauge overall economic activity. Firms with capital expenditures of $250,000 or more are included in the FCI. It is a supplementary index to the Producer Price Index (PPI) and the Consumer Price Index (CPI). Components […]

Marketable Securities Marketable securities are financial assets that are traded on a public stock exchange. They are typically traded in large enough quantities to allow for easy entry and exit by investors. Examples of Marketable Securities: Stocks Bonds Treasury securities Exchange-traded funds (ETFs) Futures contracts Options Characteristics of Marketable Securities: Traded on a public exchange: […]

Surplus means a state of having more than enough of something. It is often used in the context of monetary policy, where it refers to the situation when the government’s income exceeds its expenditures. Here are some examples of the word surplus: The company had a surplus of cash on hand. The government has a […]

Corporate Tax Corporate tax is a tax levied on corporations, partnerships, and other businesses in the United States. It is calculated based on the corporation’s taxable income, which is the total income earned by the corporation less certain deductions and exclusions. Taxable Income: Revenue from operations Interest income Rental income Dividends from subsidiaries Capital gains […]

Definition: Royalty is a hereditary title and privileged position associated with a monarch, derived from the Old English word “royalty.” Characteristics: Hereditary: Passing down through the family, usually to the eldest son. Privileged: Entitles holders to unique rights and privileges, such as certain inheritable estates, immunities, and ceremonial powers. Symbolic: Represents the embodiment of authority, […]

Red is a primary colour, which means that it cannot be created by mixing other colours. Red is often described as being a warm and passionate colour. It is often associated with love, power, and danger.

Reserve accounting is a technique used in accounting to account for certain specific future obligations and liabilities that have already been incurred but are not yet due or payable. It involves setting aside a specific amount of money in a separate account to cover these obligations. Examples of reserve accounting: Uncollectible accounts: A company might […]