Accounting Documents

Business-to-business transactions require series of document exchanges to ensure commercial and regulatory compliance. These documents reflect the strength of the process, internal controls, and terms of the transactions between the companies. Business purchases are not like a swipe of credit cards, as more nitty-gritty correspondence and documentation are vital in the process. One of the …

What is Blanket Purchase Order? – Benefit and How Does It Work? Read More »

The modern-day business dynamic has considerably evolved over the course of time. As a matter of fact, companies today are striving to be more agile in order to survive in a fast-paced environment. In this regard, it is imperative for businesses to ensure that they are able to make decisions on grounds of business strategy. …

What is Outsourced Accounting? & How Does It Work? Read More »

Definition A transferrable letter of credit can be described as a financial guarantee, that one of the parties, is going to transfer all, or a part of the credit that they have to the other party. Letters of credits are seen as protecting covenants that ensure that payment is made to the supplier of those …

Transferable Letter of Credit – Definition, Key Feature, and More Read More »

Definition: During the normal course of the business, there are numerous different transactions that the business carries out. It is essential to ensure that all the transactions are properly recorded and can be retrieved with proper and relative ease. In the same manner, it is also important to have clear and discrete communication channels established …

What is a Purchase Order? Definition, Key Features, Usages, And Importance Read More »

Meaning Material refers to the raw material, or the inputs that are required by the company to fulfill the production process. Subsequently, material Control comprises managerial activities that are undertaken by the decision-makers of the company in order to ensure that the quality, as well as the quantity of the materials that are used in …

Material Control – Meaning, Objective, Advantages, and More Read More »

What is a Sales Discount? Sales Discount is referred to as a discount that is extended to the customer in order to incentivize him to pay the amount early. The slight deduction from the total bill depending on timely payment acts as a motivator for the debtors of the company, since they tend to try …

Sales Discount Journal Entry – Explained Read More »

Definition: A Stale Check is defined as a check that is presented to the bank after a considerable amount of time from the date that has been mentioned on the check. The dating timeline in this regard is mostly of a duration of 6 months or more. While the bank might not always refuse to …

What is a Stale Check? – Definition, Explanation, And Features Read More »

In Financial Accounting, both Rules and Policies help determine how a company prepares its financial statements. So, the differences between the two concepts might not be readily obvious. Generally, rules and policies combine to form the body of guidelines that guides a company’s financial statements. The goal is to ensure that a company’s financial statements …

Difference Between Rules and Policies Read More »