Extraordinary expense is a non-recurring, unusual cost outside normal business operations, such as lawsuit settlements, disaster losses, or restructuring costs. These are reported separately in financial statements to give a clearer view of ongoing operational performance and avoid skewing profit trends.
Encashment involves converting negotiable instruments like cheques, bills, or bonds into cash. In accounting, it represents the realisation of funds…
Estimated useful life refers to the anticipated period an asset will remain productive and contribute to revenue generation before becoming…
Errors and omissions refer to unintentional mistakes or oversights in accounting records, such as misclassifications, arithmetic errors, or missing transactions.…
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