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Cash Receipts Journal - Explanation, Format, Example

The cash receipts journal manages all cash inflows of a business organization. In other words, this journal is used to record all cash coming into the business. For recording all cash outflows, another journal known as cash disbursements journal or cash payments journal is used.. For making entries in a cash receipts journal, the receipt of cash is usually divided into the following categories:

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Contribution margin income statement - Accounting for

The basic difference between a traditional income statement and a contribution margin income statement lies in the treatment of variable and fixed expenses. This difference of treatment of two types of costs affects the format and uses of two statements. In this article, we shall discuss two main differences of two income statements – the difference of format and the difference of usage.

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Revenue Recognition Principle of Accounting - Definition

Definition and explanation Revenue recognition principle of accounting (also known as realization concept) guides us when to recognize revenue in accounting records. According to this concept, the revenue is not recognized until it is earned and it is realized or at least realizable. Before exploring the concept of revenue recognition further through a few examples, we […]

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Price earnings (P/E) ratio - explanation, formula, example

Total earning Br 200,000 number of equity shares(Br 100 each 20,000) dividend paid br 100,000 then P/E ratio 10 return investment 15%. The firm is expected to maintain its rate of return on new investment.also find out what should be the EP ratio at which the dividend policy will have no effect on the value of the shares will your decision change if the PE ratio is 7.25 and interest of 10%?

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