Book-keeping is the art of recording the transactions on the books of original entry and the ledgers. This work is usually performed by junior clerks who are sometimes called book-keepers of accounts clerks. This work is more or less of mechanical nature and does not require any specialized knowledge of the principles of accountancy. The work of such clerks is supervised by a man who is called an Accountant.
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- Just-in-time (JIT) inventory
Just-in-time (JIT) inventory is a inventory system in which goods are manufactured or purchased just in time for use.
Drawings refer to the withdrawal of cash or other assets from an unincorporated business for the personal use of the owner. Drawings decrease the owner’s equity.
- Stock splits
A stock split, like a stock dividend, involves issuance of additional shares to stock holders according to their percentage ownership.
- Cumulative dividend
Cumulative dividend is a feature of preferred stock entitling the stockholder to receive current and unpaid prior-year dividends before common stockholders receive dividends.
- Receivables turnover
Receivables turnover is a measure of the liquidity of receivables during the period; computed by dividing net credit sales (net sales less credit sales) by average net receivables.
- Times interest earned ratio
Times interest earned ratio is a solvency measure that indicates a company’s ability to meet interest payments computed by dividing income...
- Owner’s equity
The ownership claim on total assets is owner’s equity. It is equal to total assets minus total liabilities. Here is why: the assets of a business are claimed by...