Cash is considered an asset as it increases the value of a business. Specifically, cash is considered a current asset. Also read: What Is a... View Article
Some of the examples of current liabilities are bills payable, short term debt, accounts payable and wages. Also read: What Is a Fixed Asset... View Article
The three types of assets can be broadly classified as follows Based on convertibility (current assets and non current assets) Based on... View Article
The purpose of marshalling of assets and liabilities is to promote fair dealing of assets and liabilities. Also read: Marshalling of Assets... View Article
Order of liquidity in accounting refers to the arrangement of assets and liabilities in a balance sheet based on their liquidity. The assets are... View Article
Order of permanence in accounting is the order of arranging assets in order of their permanency, i.e. assets that are most permanent are shown... View Article
Marshalling of assets and liabilities refers to the process of arranging the assets and liabilities in a balance sheet in a specific order. Also... View Article
The seven steps in the accounting cycle are as follows: Identifying and Analysing Business Transactions Posting Transactions in Journals... View Article
Depending on the situation, a suspense account can be any type of account ( i.e personal, real or nominal account). Let us understand this with... View Article
The GDP deflator is calculated by dividing nominal GDP by real GDP and multiplying it by 100 Further Reading: What is GDP? Inflation in... View Article
The GDP deflator is also known as implicit price deflator and is a measure of inflation. It is used to analyse the extent to which the increase... View Article
GDP Deflatoris the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that... View Article
WP stands for Wholesale Price Index. It represents the price of a basket of wholesale goods and does not concentrate on goods purchased by the... View Article
One of the key drawbacks of the WPI is that it only considers the impact of goods that are supposed to represent the entire population of goods.... View Article
As per the International Monetary Fund, PPI or the Producer Price Index measures the rate at which the prices of producer goods and services are... View Article
