Accounting

Invisible earnings, also known as unrecorded earnings or invisible income, are financial gains that are not captured or reported in traditional accounting statements. For learners in accounting and finance, comprehending invisible earnings is crucial as they play a significant role in assessing the true financial performance and value of an entity. Let’s delve into the […]

Jobbing is a fundamental concept in the world of finance and accounting that involves various activities related to buying and selling securities, commodities, or currencies with the aim of making a profit. It’s crucial for learners in finance to grasp the essence of jobbing as it forms the basis of many financial transactions and strategies.

In the realm of finance and accounting, understanding terms like “jobbing backward” is crucial for managing finances effectively. Jobbing backward is a method used to determine the cost price of a product or service by working backward from its selling price. This technique helps businesses assess their profit margins and make informed decisions about pricing

Job costing is a method used by businesses to determine the cost of producing a specific product or providing a particular service. It involves tracking and allocating all expenses associated with a particular job or project, allowing businesses to accurately assess profitability and make informed decisions. Understanding job costing is essential for businesses looking to

A joint account is a financial arrangement where two or more individuals share ownership and have equal access to a single account. Joint accounts are commonly used for managing shared finances, such as household expenses, family savings, or business operations. Understanding the features, benefits, and considerations of joint accounts is essential for individuals seeking to

A journal is a fundamental tool in accounting, used to record financial transactions in chronological order. It serves as the first place where transactions are documented before they are posted to the general ledger. What is a Journal? In accounting, a journal is a detailed account that records all the financial transactions of a business.

Just In Time (JIT) is an inventory management strategy where materials and products are produced or acquired only as needed for use or sale. This method helps businesses reduce inventory costs and increase efficiency. What is Just In Time (JIT)? The Just In Time (JIT) system originated in Japan and was popularized by Toyota in

What is a Landing Account? A landing account is a temporary account used in accounting to record funds received in advance of the delivery of goods or services. It serves as a holding account for payments received from customers or clients before the completion of a transaction or the fulfillment of contractual obligations. Understanding landing

What is Lapping? Lapping is a fraudulent scheme in accounting where funds received from one source are used to cover up the misappropriation of funds received from another source. It involves manipulating financial records to conceal the theft of money and is commonly associated with accounts receivable or cash receipts. Understanding lapping is crucial for

What is Last-In-First-Out Cost? Last-In-First-Out (LIFO) cost is a method used for valuing inventory in accounting and finance. Under the LIFO method, the cost of the most recently acquired or produced inventory is matched with the cost of goods sold (COGS) first, meaning that the last items added to inventory are assumed to be the