Statement of Changes in Stockholders’ Equity Definition

What Is the Statement of Changes in Stockholders’ Equity? Statement of changes in stockholders’ equity is a financial statement that summarizes the transactions and events which affect a variety of stockholders’ equity accounts.

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T Account Definition

What is T Account? T Account may be defined as an account that has a T-Shaped form and is used to analyze transactions.

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Quantifiability Definition

Define the term “Quantifiability” The term quantifiability may be defined as a characteristic of the accounting system which admits as inputs only those transactions and events can be represented in numerical (primarily monetary) terms.

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Stockholders’ Equity

What Is Stockholders’ Equity? Stockholders’ equity is the owner’s equity of a corporation representing the residual claims of the owners.

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Accounting terms – British vs American

Although Basic Principles of Accounting are almost the same all over the world but the American Accounting practices differ to some extent from the British Accounting practices. Some American terms are given below which are equivalent to British terms: Sr. No. British Terms American Terms 1 Goods Merchandise 2 Stock Inventory 3 Purchases on credit Purchases on account 4 Gross Profit Gross Income 5…

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Owner’s Equity or Internal Equity

What is Owner’s Equity? Owner’s Equity means the right of the owner on the assets of the business; it is also called internal equity. The owner has right on business to the extent of the amount invested by him or the claim of the owner against the assets of the firm is called internal equity or owner’s equity e.g. Capital. Or Owner’s Equity is a general term used to specify the owner’s residual in…

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Transaction Definition

What is meant by the term transaction? Any event that changes the financial position of a business concern and that must be recorded in the books of accounts is called a “Transaction”. It should be remembered that a transaction should be expressed in terms of money and should bring a change in the financial position of a business. Or Transactions are the business events, measured in money, and rec…

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Homogeneous Cost

Homogeneous cost pool is a cost pool in which each activity whose costs are included in it as the same or a similar cause and effect relationship between the cost driver and the costs at that activity.

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High-Low Method

High-low method is a method of estimating a cost function that uses only the highest and values of the cost driver within the relevant range.

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Fixed-Price Contract

Fixed-price contract is the contract reimbursement method in which the price the contractor receives is established at the outset.

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