Outstanding stock means the number of shares of issued stock that are being held by stockholders.
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- Direct and indirect fixed costs
A profit center may have both direct and indirect fixed costs. Direct fixed costs relate specifically to one center are incurred for the sole benefit of that center.
Accounting is the financial information system that identifies, records, and communicates the economic events of an organization to interested users.
- Credit memorandum
Sometimes a depositor asks the bank to collect its notes receivable. In such a case, the bank will credit the depositor’s account for the cash proceeds of the note.
The largest intangible asset that appears on a company’s balance sheet is goodwill. Goodwill represents the value of all favorable attributes that relate to a company.
- Divisible profits
Divisible profits means those profits which can legally be distributed to the shareholders of a company in the form of dividends. It also does not say that only “true profits” can be divided.
Taxation is an area of public accounting involving tax advice, tax planning, preparing tax returns, and representing clients before governmental agencies.
- Closing the books
At the end of the accounting period, the company makes the accounts ready for the next period. This is called closing the books. In closing the books, the company...