SYD is an Excel function that calculates the depreciation expense under the sum of the years digits method.
Financial Ratios are indicators computed as a proportion of one financial value to another highly relevant financial value. They are used to analyze financial position i.e. liquidity and solvency, and financial performance i.e. profitability and efficiency of a company.
DDB is an Excel function that calculates the depreciation expense on an asset under the double declining balance. DDB stands for double declining balance, a magnified form of accelerated depreciation method.
DB is an Excel function that calculates the depreciation expense in a period under the declining balance method, an accelerated depreciation in which the depreciation expense is highest in initial year and declines over time.
Fixed assets (also called capital assets or property, plant and equipment (PPE)) are operational assets that generate economic benefits for a business over a long-term period.
SLN is an Excel function that calculates the depreciation expense to be charged on an asset under the straight line depreciation method. As the name suggest, straight-line method charges depreciation equally over the useful life of the asset.
Revenue expenditure is expenditure which is expensed out in the period in which it is incurred. It is not recorded as an asset on balance sheet because it is expected to benefit the company only in the period in which it is incurred.
Accruals are revenues and expenses that are recognized (usually referred to as “accrued”) prior to the due date for their receipt or payment as the case may be. This practice of accruing revenues and expenses before their due dates is based on the accrual principle of accounting.
Relevant cost of raw material is the material cost that needs to be considered while taking a managerial decision. Relevant cost of material may be in the form of incremental cash flows or opportunity cost.
Accounting errors are unintentional mistakes in book-keeping of transactions. Accounting errors are different from accounting fraud because in fraud an intentional mistake is made to ...