Accounting

Falsification of accounts is a serious issue in business and finance. This article explores what falsification of accounts entails, provides examples to illustrate its implications, discusses why it occurs, and outlines the legal and ethical consequences associated with such practices. What is Falsification of Accounts? Definition Falsification of accounts refers to the deliberate manipulation, alteration, […]

Fictitious assets are a concept in accounting that requires understanding their nature, implications, and how they impact financial statements. This article aims to define what fictitious assets are, provide examples to illustrate their usage, discuss their significance, and highlight their impact on financial reporting. What are Fictitious Assets? Definition Fictitious assets are items that appear

The FIFO cost method is a fundamental concept in accounting and finance that influences how businesses value their inventory and calculate cost of goods sold. This guide aims to explain what FIFO (First-In, First-Out) cost method is, how it works, its application, and provide practical examples to help learners understand this concept. What is FIFO

Final accounts are crucial documents in accounting that summarize a company’s financial performance and position at the end of an accounting period. This guide aims to explain what final accounts are, their components, how they are prepared, and provide practical examples to help learners grasp this concept in accounting and finance. What are Final Accounts?

Financial accounting is a foundational aspect of business and finance that involves recording, summarizing, and reporting financial transactions of an organization. This guide aims to explain what financial accounting entails, its objectives, principles, and provide practical examples to aid learners in understanding this essential concept in financial management. What is Financial Accounting? Definition Financial accounting

Finished Goods Stock, also known as finished goods inventory, refers to the completed products that a company has ready for sale to customers. These goods have undergone all stages of production, including manufacturing, assembly, and quality control, and are now awaiting distribution to customers or retailers. Finished goods stock is a crucial component of a

The First-In-First-Out (FIFO) Cost is an inventory valuation method used in accounting and finance to determine the cost of goods sold (COGS) and the value of the remaining inventory. Under this method, it is assumed that the first items purchased or produced are the first ones to be sold or used. This technique helps in

First-Year Allowance (FYA) is a type of tax relief that allows businesses to deduct a large portion, or even all, of the cost of certain qualifying assets from their taxable profits in the year the assets are purchased. This is designed to encourage investment in specific types of assets by providing immediate tax benefits. Key

Fixed assets are long-term tangible assets that a business uses in its operations to produce goods and services. These assets are not expected to be consumed or converted into cash within a year. Instead, they are used over several years and provide long-term value to the company. Examples of fixed assets include buildings, machinery, vehicles,

Fixed capital refers to the portion of a company’s total capital that is invested in long-term assets. These assets, also known as fixed assets, are used in the production of goods and services and are not intended for resale. They include items such as buildings, machinery, equipment, and vehicles. Fixed capital is essential for the