Margin
Margin refers to the difference between sales revenue and the cost of goods sold. It represents how much a company earns after covering production costs. Higher margins indicate better profitability. Gross, operating, and net margin are commonly used to assess business performance at different levels of the income statement.
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Merger Accounting
Merger accounting refers to how the books are consolidated when two companies combine. Depending on the type of merger, acquisition,…
Money Measurement Concept
This accounting concept states that only transactions measurable in monetary terms are recorded in the books. Non-quantifiable events like employee…
Modified Accrual Accounting
Modified accrual accounting blends elements of cash and accrual methods. Commonly used in government and nonprofit entities, it recognizes revenues…
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