The High-Low Method is a technique used to predict cost behaviour by plotting observations of cost levels for various activity levels on a graph. A straight line is drawn through the plots at the highest and lowest activity levels, representing the cost behaviour characteristics.
Matrix accounting leverages the use of matrices for recording and analyzing accounting transactions and events, offering a streamlined and visual approach compared to traditional T accounts.
Window dressing refers to practices aimed at presenting a situation in a more favorable light than it actually is, often used by accountants to enhance the appearance of balance sheets.
Vertical Analysis is a method of financial statement analysis where each entry is listed as a percentage of a base figure within the statement. Commonly used for balance sheets and income statements, this technique helps in understanding the relative size of financial statement items.
Comprehensive guide to understanding earnings management, including its definition, concrete examples, various types, and implications for financial reporting.
Explore the equity method of accounting, its definition, application, and practical examples. Learn how companies record profits from their investments using this technique.
Learn how to prepare a cash flow statement using the indirect method by adjusting balance sheet accounts from the accrual method to the cash method.
