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Operating Activities

A business carries out investing activities to build its productive capacity needed for its operations. Operating activities which are carried...

Investing Activities

A business makes investments to secure resources that will allow it to build productive capacity and deliver on its value...

Statement of Financial Position

Previously known as balance sheet, it is a detailed projection of the assets, liabilities, and owners' equity of a business...

SFP

It stands for statement of financial position; previously known as balance sheet, it is a detailed projection of the assets,...

Depreciation

The gradual diminution, loss or decrease in the utility value of an asset as resulting from wear and tear. Depreciation...

Mixed Ratio

A financial ratio that is constructed using inputs (numbers) from more than a financial statement, particularly income statement and balance...

Matching Principle

An accounting concept that associates revenue generated in a specific period with all the costs/ expenses incurred or necessary to...

ATL Costs

In the income statement (profit nd loss/ PnL) it describes all expenditure (expenses) incurred by a firm before taxes and...

Above The Line Costs

In the income statement (profit nd loss/ PnL) it describes all expenditure (expenses) incurred by a firm before taxes and...

Below The Line Items

Items of financial statements that have a financial impact, though not directly related to the core business/ operations of a...