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Systematic Allocation
Systematic allocation refers to spreading the cost of an asset over its useful life in a consistent and rational manner. This concept underpins depreciation and…
READ MORESecured Loan
A secured loan is borrowing backed by specific collateral, such as property, inventory, or equipment. If the borrower defaults, the lender has the legal right…
READ MOREStatement of Changes in Equity
The statement of changes in equity outlines movements in shareholders’ equity during a reporting period. It includes issued capital, dividends, profit allocations, and other comprehensive…
READ MORESubstantive Testing
Substantive testing is an audit procedure used to verify the accuracy and completeness of financial statement balances. Auditors examine supporting documents, confirmations, and transaction records…
READ MORESolvency Ratio
A solvency ratio measures a company’s ability to meet its long-term debt obligations. It evaluates financial stability by comparing net income, depreciation, or total assets…
READ MOREShare Capital
Share capital is the total amount invested in a company by shareholders in exchange for shares. It represents a key source of funding for businesses…
READ MOREStocktaking
Stocktaking is the physical counting and verification of inventory on hand at a specific point in time. It ensures the accuracy of recorded inventory levels,…
READ MORESales Revenue
Sales revenue is the total income generated from selling goods or services before deducting any costs or expenses. It’s the top line of the income…
READ MOREService Revenue
Service revenue is income earned from providing services rather than selling physical goods. It is recognised when the service is rendered, not necessarily when cash…
READ MORESegment Reporting
Segment reporting breaks down a company’s financial results by business unit, geography, or product line. It enhances transparency and helps investors understand which areas are…
READ MORESunk Cost
A sunk cost is a past expense that cannot be recovered and should not affect future decisions. Examples include money spent on cancelled projects or…
READ MORESales Tax
Sales tax is a consumption-based tax imposed on goods and services at the point of sale. The seller collects it from customers and remits it…
READ MORESuspense Account
A suspense account is a temporary holding account used when there are uncertainties or discrepancies in transactions. It stores unclassified or incomplete entries until they’re…
READ MOREStraight-Line Depreciation
Straight-line depreciation is a method where an asset’s cost is evenly spread over its useful life. It’s calculated as (Cost − Residual Value) ÷ Useful…
READ MOREStandard Costing
Standard costing involves assigning predetermined costs to products for materials, labour, and overhead. These estimates serve as benchmarks for measuring performance. Variance analysis compares standard…
READ MORESubsidiary Ledger
A subsidiary ledger is a detailed ledger that supports a control account in the general ledger. For example, the accounts receivable ledger contains individual customer…
READ MORESales
Sales represent the total revenue earned from selling goods or services during a specific period. It forms the backbone of a company’s income statement. Sales…
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