What is bad debt?

What is non current assets register?

Bad debt is the debt which can not be recovered or the debt which have become irrecoverable. Situations which can lead to bad debt include the situation when the debtor is dead and has left no money to pay his debt or when debtor become bankrupt. read more

What is cash budget?


Cash budget is the budget which present expected cash inflow and outflow of the entity for the designated time period. Cash budget is prepared for purpose of cash planning and control. The cash budget helps management keep cash balance in reasonable relationship to its needs. It aid in avoiding unnecessary idle cash and possible cash shortages. read more

Limitation of cost volume profit (CVP) analysis

Cost volume profit analysis (CVP) is the model used to analyse the behavior of net income in response to changes in total revenue, total cost, or both.
The cost volume profit (CVP) analysis model depends on understanding the effects of cost behavior on profit, and identifying only the relevant relationship.   read more

Six (6) differences between break-even (BE) chart and profit volume (PV) chart.

What is standard cost?

A break-even chart is a chart that shows the sales volume level at which total costs equal sales.  Losses will be incurred below this point, and profits will be earned above this point.

A profit-volume (PV) chart is a graphic that shows the earnings (or losses) of an entity in relation to its volume of sales. Entities can use profit-volume (PV) charts to establish sales goals, analyze whether new products are likely to be profitable, or estimate break-even points. read more