Most Popular Financial Accounting Topics

Adjusted Trial Balance

An Adjusted Trial Balance is a list of the balances of ledger accounts which is created after the preparation of adjusting entries ...

Revaluation of Fixed Assets

In financial accounting, revaluation of fixed assets is the process of increasing or decreasing the carrying value of fixed assets to account for major changes in fair market value of the asset ...

Accrual Concept

Business transactions are recorded when they occur and not when the related payments are received or made. This concept is called accrual basis of accounting and it is fundamental to the usefulness of financial accounting information ...

Inventory Turnover

Inventory turnover is the ratio of cost of goods sold to average inventory. It is an activity / efficiency ratio and it measures how many times per period, a business sells and replaces its inventory again ...

Debit Credit Rules

In financial accounting debit and credit are simply the left and right side of a T-Account respectively. They are used to indicate the increase or decrease in certain accounts ...

Recent Financial Accounting Topics

Operating Activities Cash Flow by Indirect Method

In indirect method of cash flow calculation, the Net Income figure from the income statement is adjusted to calculate the amount of net cash flow from operating activities ...

Gross Margin Ratio

Gross margin ratio is the ratio of gross profit of a business to its revenue. It is a profitability ratio measuring what proportion of revenue is converted into gross profit ...

Return on Equity Ratio

Return on equity or return on capital is the ratio of net income of a business during a year to its stockholders' equity during that year. It is a measure of profitability of stockholders' investments ...

Times Interest Earned Ratio

Times interest earned or interest coverage ratio is the ratio of earnings before interest and tax (EBIT) of a business to its interest expense during a period ...

Declining Balance Method of Depreciation

Declining balance method of depreciation is type of accelerated depreciation in which the amount of depreciation that is charged to an asset declines over time ...