Net income results when revenues exceed expenses. A net loss occurs when expenses exceed revenues.
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- Responsibility accounting
Responsibility accounting is a part of management accounting that involves accumulating and reporting revenges and costs on the basis of the manager who...
- Direct method
Direct method is a method of determining net cash provided by operating activities by adjusting each item in the income statement from the accrual basis to the cash basis.
- Indirect method
Indirect method is a method of preparing a statement of cash flows in which net income is adjusted for items that do not affect cash to determine...
- Unearned income
Income received though a part of it is not applicable to the current year but will be earned during the following year is called
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.
- Free cash flow
Free cash flow means cash provided by operating activities adjusted for capital expenditures and dividends paid.
- Forensic accounting
Forensic accounting is an area of accounting that uses accounting, auditing, and investigative skills to conduct investigations into theft and fraud.