Author: Sarthak Bhalerao Table of Contents What is Historical Cost? The historical cost of an asset, in accounting terms under the U.S GAAP, is the original price at which it was purchased. The cost of all assets is recorded on…
So, let me give you some examples to make you understand the social audit meaning. One example of a real-life social audit is the Fair Labor Association (FLA) audit of a factory in China that produced clothing for a number…
This is a straighforward explaination of the economics concept called as substitution effect. And if you have been wondering around with the dilema of what is substitution effect then you search ends here. What is Substitution Effect? The substitution effect…
What is store value? A store of value is an asset or commodity that retains its purchasing power in the future. It maintains its value over a long period. If the item held gets converted into money in the future…
A shutdown point is a level of operation in which the company no longer benefits from continuing its operations and hence decides to shut down temporarily or permanently. The company no longer benefits from continuing production in the short run…
What is Paasche Price Index? Paasche Price Index is a price index that is used to measure the price level and cost of living in an economy and to calculate inflation. It was invented by a German Economist, Hermann Paasche.…
What is Autonomous Consumption? Autonomous consumption is the consumption expenditure that occurs when the income levels are zero [1]. This expenditure consists of goods and services which must be purchased even when the individual is broke or has little or…
Promissory estoppel is a legal principle that prevents a person from going back on a promise they made if another person has relied on that promise and acted in a way that would be detrimental to them to change that…
Author: Sarthak Table of Contents What is an Appropriation Account? How does the Appropriation account work? Examples What is an Appropriation Account? In simple words, appropriation is a process of setting aside funds, usually, the profits generated by the company…
Short SellWhat is Short Selling? Let’s first understand the basic concept of what is short selling and the pros and cons.In short, selling the sequence of transacting a stock or securities is exactly the opposite. Short selling is a way…
Several companies use different Types of financial analysis both internally and externally. These analyses are a great way for any business to evaluate its financial stability, and for investors to evaluate whether or not your company is a worthy investment.…
A liability, in accounting or financial terms, refers to the obligation that a business must pay at the end of a certain period. In this article, I will be going over in detail the components of balance sheet and finally,…
