Debt Securities Definition

What are Debt Securities? Debt securities are a type of investment that give the holder a claim on a company’s financial obligations to either borrow money from the public or from another firm. This means, if you have invested in debt securities, then you will be entitled to receive interest payments and repayment of your principal when the obligation matures. How do debt securities work? Debt sec…

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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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Stockholders’ Equity Definition

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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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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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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External Failure Costs

External failure costs is a category of incurred cost in a cost of quality program when a nonconforming product is detected after its shipment to customers.

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Double-Declining Balance (DDB)

Double-declining balance (DDB) is a form of accelerated depreciation in which first-year depreciation is twice the amount of straight-line depreciation when a zero terminal disposal price is assumed.

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Direct Materials Inventory

Direct materials inventory can be defined as direct materials on hand and awaiting use in the production process.

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