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Relevance

A qualitative characteristic of financial information that is provided in financial statements and financial reporting by an entity. It refers...

Closely Held Entity

An entity that has a limited number of shareholders (such as 3 or 5 people). The stock of such an...

GPFR

It stands for general purpose financial reporting; financial reporting that aims to accommodate the common information needs of a variety...

General-Purpose Financial Reporting

Financial reporting that aims to accommodate the common information needs of a variety of users, rather than a specific set...

EIM

It stands for effective interest method; an method/ technique whereby the amortized cost of a financial asset or a financial...

Effective Interest Method

An method/ technique whereby the amortized cost of a financial asset or a financial liability is calculated to the effect...

Liquidity Ratio

An accounting ratio that relates an entity's current assets, liquid assets, or highly liquid assets (absolute liquid assets) to its...

Net Credit Sales

The amount that results from deducting cash sales from total sales. In other words, it is equal to the net...

Cash Basis Accounting

A method of accounting whereby an entity recognizes its income and expenses on the general ledger on a cash basis-...

Accrual Basis Accounting

A method of accounting whereby an entity recognizes its income and expenses on the general ledger on an accrual basis-...