Cash flow statement represents a company’s cash handling capacity. This statement shows how a company manages its cash, where its generating revenues to fund operating expenses like salaries, rent expense, asset purchase expense etc.
Fair market value is the standard or fair market price of a property at the time of selling or auctioning in the open market.
Static Budget can be defined as the budget which never changes irrespective of the actual result. For example: If the operating expense goes above fixed amount then also this budget will not change.
Social Security tax is levied on citizens of United States by United States Govt. Under Federal Insurance Contributions Act.
Memo entry doesn’t have any effect on general ledger, journal or balance sheet as it’s not recorded in these accounts.
When expenses occurred without any cash flow then those expenses are termed as “Non Cash Expenses”. For example, asset depreciation; depreciation is an automated & fix expenses charged to be every month with a particular depreciate percentage but for this no cash outflow occurred at the particular period as it occurred at the time of asset purchase.
Valuation account is a balance sheet which combines with asset & liabilities account to find out the net carrying amount of respective assets and liabilities. Allowance for doubtful accounts, accumulated depreciation etc. termed as a valuation account.
prime costs are directly related to production costs. These costs are consumed during the production process. It includes the labor cost and raw material cost as raw material and labor are the prime inputs in manufacturing a product.
Spoilage defines leftovers in a manufacturing process. These are also called as product wastes. These can be of two types avoidable and unavoidable.
The hurdle rate is the minimal amount of rate of return an investor needed from his investment in a project. It also called as “minimum acceptable rate of return” (MAAR).