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Actual Cost

Broadly speaking, it is the exact amount of expense that is incurred in connection with an operation/ requirement as opposed...

ABC Inventory Classification

An accounting method that is applied as an inventory control for the practical purpose of categorizing inventory by order of...

ABC

An accounting method that is applied as an inventory control for the practical purpose of categorizing inventory by order of...

Related-Party Transaction

A transaction that is entered into by two parties who are related, i.e., they have some sort of connection prior...

Relevance Concept

An accounting concept that calls for accounting information (as reflected in the financial reports) to be available in such a...

Replacement Cycle

The frequency with which an asset (usually a depreciable asset) is replaced by another asset, either with similar/ identical features,...

Derecognition

The process that involves the removal of a financial asset or financial liability or generally any element (that was already...

Bottom Line

Broadly speaking, it is the final total of an account or a financial statement (specifically the statement of financial position...

Financial Profit

The net income (NI) or net earnings an entity earns after deducting all monetary costs from total revenue. It reflects...

Bookkeeping Profit

Profit or loss pertaining to a specific accounting period before deducting tax expense. In other words, it refers to profit...