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Welcome to our blog! Here, you can find the useful articles related to accounting, audit, finance and tax.

Decision Tree: What Is It and How Does It Work?

Decision tree The decision tree is a diagrammatic approach to make a decision on the basis of the statistical concept of probability. The diagram is called a decision tree as the branches of the diagram are spread in the form of a tree. Different branches of the tree...

Budgetary control – Concept, Objective, Advantages, and More

Budgetary control is a concept of financial accounting that helps to oversee the payments and receipts within an organization. It provides a greater tool to plan, monitor, and control financial activities within an organization. The concept of budgetary control can be...

Accounting For Bad Debts – Explained

Capital is the lifeblood of any business. Capital is a combination of equity and debt. So, any company needs debt and equity to balance its capital. When you heard the word ‘bad debt,’ you might wonder if there is any good debt too? Because all of us have a general...

Expenditure Coverage Ratios – Explained

Any business that wants to scale and grow needs financial stability. The financial health of any business entity is very critical to determine the scaling potential. Any company struggling to meet its day-to-day expenses cannot dream of becoming one of the top 100...

Depreciation Accounting – What Is It? Explained

The matching principle of accounting explains when an expense should be realized. In any business, expenses are incurred to generate revenues. Any cost incurred by a business to earn an income should be offset against that revenue. In other words, the recording of...

Capital Leases – Accounting Treatment and Example

Under the Generally Accepted Accounting Principles(GAAP) and Financial Accounting Standards Board(FASB), leases are treated as a special kind of liabilities. In general, the lease is kind of a rental agreement between two parties. The lessor gives the lessee right to...

Accounting For Construction In Progress – Explained

A construction company might come to your mind by reading the phrase “Construction In Progress.” Indeed, construction in progress accounting is mostly used by construction firms. Besides business dealing in building huge fixed assets, also use construction in progress...

Beyond Budgeting – Overview, Definition, Principle, And More

Overview Budgeting and Monitoring tend to be an increasingly important part of all organizations, regardless of their size and functionality. It helps to give numerous valuable insights regarding the company, and what needs to be done in order to ensure that there are...

Cost Accounting – Types, Example, Advantages, and More

What is Cost Accounting? Cost Accounting is referred to as a branch of managerial accounting, which mainly aims to encapsulate all costs within a company, by assessing variable costs along with each step of production. It is considered to be a metric that helps...