Realization Concept
The realization concept states that income is recorded when it is earned and reasonably certain to be received, not necessarily when cash is collected. This principle supports accrual accounting and ensures financial statements reflect actual economic activity. It prevents premature recording of income and promotes consistency and reliability in reporting.
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Reorder Level
Reorder level is the predetermined inventory threshold at which a new purchase must be initiated to avoid stock shortages. It…
Risk Assessment
Risk assessment is the process of identifying and evaluating potential financial, operational, or compliance risks that could impact an organisation.…
Revaluation Surplus
Revaluation surplus arises when a company increases the carrying value of an asset to reflect fair market value. The upward…
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