Activity Based Costing (ABC) Method


Introduction Activity Based Costing (ABC)  is a costing method in accounting that focuses on different activities and resources that are essential to produce a product or service. The main focus of this costing method is to identify and analyze the activities and cost drivers that contribute to the production and then to assign costs to … Read more

What is Management Accounting ?

Scope of Management Accounting

Introduction Management accounting is the process of preparing financial statements, internal reports, and documents which assists the management body to make better decisions related to performance of a business. The primary goal of this accounting is to provide relevant information to the management to frame the policies and help in the decision making process. Identification, … Read more

Cost Accounting: Concept and Limitations

limitations of cost accounting

Introduction to Cost Accounting Cost accounting is one of the disciplines of accounting science. This concept was professionally practiced in 1889 by Jerome Lee Nicholson. To understand the cost accounting concept, we must understand some of the terminologies related to it.  Cost It is the resources sacrificed to obtain something. Costing It is the process … Read more

What are Financial Statements ? Characteristics and Shortcomings

financial statements definition

Introduction Financial statements are a set of documents that provides information about the financial position, operating performance and cash flows of a company or other organization. They are usually prepared annually and are divided into three main categories: Financial statements provide a snapshot of the financial health of a company. They are an excellent way … Read more

Unsecured Loan Explained


Meaning : Unsecured Loan An unsecured loan is a loan that does not require any collateral. This means, the borrower doesn’t have to provide any form of assets as a guarantee for repayment. This type of loan is not backed by a bank account, home, or any other asset forms. This type of loan is … Read more



ACCOUNTING EQUATIONS Assets Capital + Liabilities Assets Capital Introduced + (Income -Expenses ) -Drawings + Liabilities Shareholders’ Equity Capital Stock + Retained Earnings NET INCOME EQUATIONS Net Income Revenue – Expenses Net Income Income from Operations + Interest Income -Income Taxes BREAK EVEN POINT Break Even Point Sales-Fixed Costs-Variable Costs CASH RATIO EQUATION Cash Ratio … Read more

Financial Accounting vs Management Accounting

Financial accounting and managerial accounting

Definitions Management Accounting involves preparing reports about business operations which later helps managers make short term and long term strategies and decisions. Meanwhile, Financial Accounting is a branch of accounting which involves recording, summarizing, and reporting of the transactions from business operations over a period of time. Characteristics Financial Accounting  Management Accounting Money TransactionHistorical NatureLegal … Read more

What is Bancassurance? What are its Advantages


Introduction to Bancassurance Bancassurance was first registered in 1860 when CGER Saving Bank of Belgium began to sell mortgage-linked insurance. In 1980, the term Bancassurance was defined as the sale of insurance products through the bank distribution channel. Bancassurance is the association of banking and insurance facilities. It is basically the idea of selling the … Read more

Letter of Credit or Documentary Credit

Letter of Credit or Documentary Credit

Letter of Credit or Documentary Credit Letter of Credit (LC) originated from Latin word “accreditivus” which means trust and adapted from a French word “accreditation” which means a power to do something. Letter of Credit (LC), also known as Documentary Credit (DC), is one of the most common modes of payment in international trade. It … Read more