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Welcome to our blog! Here, you can find the useful articles related to accounting, audit, finance and tax.
What is Performance Prism? And How is it Using
Overview The performance prism is a multi-dimensional performance measurement framework. It can be applied for not-for-profit and for-profit organizations alike. The performance prism model considers all stakeholders, their needs, and the expectations from each one of...
What Is the Balanced Scorecard? And How is it Using
Overview Most performance measurement tools either consider financial or non-financial metrics. The balanced scorecard takes into account both aspects of performance measurement. The balanced scorecard also considers both internal and external perspectives of an...
What is Lean Management Information System? And How Does It Work
Overview The principles of lean management systems urge the efficient use of resources, minimizing waste, and continuous improvements. As the principles suggest, lean management is not a one-time process. It is an iterative process that seeks perfection and continues...
The Bottleneck In Production – What Is It and How to Deal With It?
The bottleneck in production is some scarce resource that reduces the production capacity of the whole chain. The bottleneck needs to be efficiently managed to ensure profit maximization and enhanced business efficiency. It’s called a bottleneck because the neck...
Premium Pricing: What is it and How Does It Work?
Definition: Premium pricing is when the business charges higher prices of the product than an immediate competitor. The setting of the higher price creates psychological influence in the market that the quality of the product is higher that’s why the business is...
What is Operating Profit? (Definition, Using, Formula, And More)
Definition: Operating Profit is the type of profits recorded in the entity's financial statements for the period after the deduction of operating expenses from Gross Profit. This profit is before charging interest expenses and tax expenses of the period. Operating...
What Are Accruals In Accounting? (Definition, Explanation, Example, And More)
As the business operations of an entity expand, the scope of departments also increases. Similarly, business entities have to adopt more practical accounting and financial reporting approaches for legal and tax purposes. A business entity can no more rely on pre-made...
What Are Accrued Revenues? (Definition, Explanation, Example, and More)
The accrual-based accounting system implies that the revenues and expenses should be recorded when they are earned or incurred. This accounting approach does not relate receipt or payment of cash with the recognition of the economic transaction. The accrual-based...
The Current Ratio: Formula, Example, Calculation, And More
Overview The current ratio is the measure of the short-term liquidity of a company. It shows the ability of a company to meet its short-term liability through its current assets. It is important to understand the current ratio, how it works, and what information it...
