Running costs are recurring operational expenses necessary for keeping the business functioning day-to-day. This includes fuel, maintenance, salaries, insurance, and office supplies. Unlike capital expenses, running costs don’t result in asset acquisition. They directly impact profit and are monitored closely for cost control.
A reverse entry is made at the beginning of a new accounting period to cancel out an adjusting journal entry…
Revenue recognition is the accounting principle that determines when income should be recorded. Under accrual accounting, revenue is recognised when…
Retained earnings represent the cumulative net profit a company keeps after distributing dividends to shareholfers. Reported under equity on the…
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