Outstanding liabilities are those liabilities which have not been paid at the date of the balance-sheet.
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Insurance is a means of protection from financial losses due to fire, theft, and other unforeseen events. Companies purchase insurance to protect themselves from...
- Direct materials price standard
The direct materials price standard is the cost per unit of direct materials that should be incurred. This standard should be based on the purchasing department’s best...
- Cost method
Cost method is an accounting method in which the investment in common stock is recorded at cost, and revenues are recognized only when cash dividends are received.
- Capital deficiency & No capital deficiency
Capital deficiency refers to a debit balance in a partner’s capital account after allocation after allocation of gain or loss. No capital deficiency All partners have credit balance...
- Three-column of account
Three-column of account is a form with columns for debit, credit, and balance amounts in an account. The balance in the account is determined after each transaction
- Flexible budget
Flexible budget is a projection of budget data for various levels of activity. In essence, the flexible budget is a series of static budgets at different levels of activity.
- Return on investment (ROI)
The primary basis for evaluating the performance of a manager of an investment center is return on investment (ROI) which refers to a measure of management’s...