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Category: Accounting Basics

link to What is Net Worth?

What is Net Worth?

Net worth refers to the total value of an individual's assets, including cash, investments, real estate, and any other possessions, minus any debts or liabilities that they owe. It is essentially a...

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link to What is Continuous (Rolling) Budgeting?

What is Continuous (Rolling) Budgeting?

Continuous budgeting, also known as perpetual budgeting or rolling budgeting, is an approach to budgeting where the budget is continuously updated and revised over a specified period. Unlike...

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link to What is the Difference Between Fixed Costs, Variable Costs, and Mixed Costs?

What is the Difference Between Fixed Costs, Variable Costs, and Mixed Costs?

As a business owner or manager, understanding the costs associated with running your business is crucial to making informed decisions. One of the fundamental concepts to understand is cost behavior,...

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link to What is a Standard Cost Variance?

What is a Standard Cost Variance?

In managerial accounting, standard cost variance is the difference between the actual cost incurred to produce a product or service and the standard cost that was expected. Standard cost variance is...

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link to What is Allowance for Doubtful Accounts?

What is Allowance for Doubtful Accounts?

Allowance for doubtful accounts is a contra asset account that is used to offset the accounts receivable account. It represents an estimate of the amount of accounts receivable that a company...

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link to How Do Journal Entries Work in Accounting?

How Do Journal Entries Work in Accounting?

Journal entries are one of the most fundamental and essential concepts in accounting. A journal entry is a record of a transaction that affects a company's financial statements. Journal entries are...

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