What is the Advance Decline Ratio? The advance decline ratio (ADR) is a technical indicator used to assess stock market sentiment. The ratio compares the number of stocks that increased in value to the number of stocks that decreased in value. In other words, the ADR compares the number of stocks that rose in price…
What are Excel Array Formulas? Excel array formulas allow us to use standard Excel formulas on multiple cells at the same time. Unlike standard formulas, which take individual cells as inputs, array formulas take entire arrays as inputs. Types of Array Formulas Array formulas can be broadly categorized into two groups: single output array formulas…
What is Managerial Accounting? Managerial accounting (also known as cost accounting or management accounting) is a branch of accounting concerned with the identification, measurement, analysis, and interpretation of accounting information. Managerial accounting helps company management make informed operational and business decisions. What is the Main Focus of Managerial Accounting? Managerial accounting focuses on internal reporting…
What are Accounts Expenses? An expense in accounting is the money spent, or costs incurred, by a business in their effort to generate revenues. Essentially, accounts expenses represent the cost of doing business; they are the sum of all the activities that hopefully generate a profit. It is important to understand the difference between “cost”…
What is Operating Cash Flow? Operating Cash Flow (OCF), also called cash flow from operations or cash flow from operating activities, is the amount of cash generated by the regular operating activities of a business over a specific period. The formula for each company will be a little different, but the basic structure always consists…
What is an Expense? Businesses incur various types of expenses. An expense is a type of expenditure that flows through the income statement and is deducted from revenue to arrive at net income. Due to the accrual principle in accounting, expenses are recognized when they are incurred, not necessarily when they are paid for. Types…
What is IFRS vs US GAAP? The IFRS vs US GAAP refers to two accounting standards and principles adhered to by countries in the world in relation to financial reporting. More than 110 countries follow the International Financial Reporting Standards (IFRS), which encourages uniformity in preparing financial statements. On the other hand, the Generally Accepted Accounting…
What is Inheritance Tax? Inheritance tax is a tax paid by a person or persons who inherit the estate (money or property) of a deceased person. In some jurisdictions, the terms “estate tax” and “inheritance tax” can be used interchangeably. In the United Kingdom and a few Commonwealth countries, the tax is also called the…
What is Cash? In finance and accounting, cash refers to money (currency) that is readily available for use. It may be kept in physical form, digital form, or invested in a short-term money market product. In economics, cash refers only to money that is in the physical form. Cash in Business Operations Cash is the…
What is Direct Labor? Direct labor refers to the salaries and wages paid to workers directly involved in the manufacture of a specific product or in performing a service. The work performed must be related to the specific task. For a business that provides services to its customers, direct labor is the work performed by…
