Financial Management

Assets and liabilities are two of the most important concepts in accounting and finance. They are used to measure the financial health of a business or individual. The difference between assets and liabilities is that assets are items of value owned by a business or individual, while liabilities are obligations or debts owed by a business or individual.

Accounting policies are essential for financial management in organizations. They provide a plan for how transactions are logged, stated, and interpreted. Policies ensure correctness and openness in financial statements by establishing consistent rules. How many types of accounting policies are there?

The 50% rule in accounting is a guideline businesses use to classify expenses. If an expense is more than half the cost of replacing an asset, it’s a capital expenditure. This rule is important for companies to record expenses an keep proper financial records. It helps differentiate between costs that are big enough to be capital […]

Accurate journal entries are crucial in accounting – they provide the basis for financial statements and reports. These entries document daily business transactions, making sure every one is recorded and classified properly. If entries are inaccurate, financial data could be unreliable – leading to incorrect financial statements and potentially poor decision-making. What are the basic […]

Rule 72 in Accounting – a crucial concept to know! It helps calculate how long an investment takes to double based on its interest rate. The formula is simple: 72 divided by the interest rate (%) will give you the number of years. For instance, if the interest rate is 6%, it would take 12 […]

Discover the key differences between the roles of a CEO and an owner in this insightful article.