3. Accounting Equation
The accounting equation is cornerstone for double-entry bookkeeping. It states that resources (also known as...
4. Expanded Accounting Equation
The fundamental accounting equation is extended to incorporate new components like owner’s capital, common shares,...
6. Equity
Equity is defined as “the residual interest in an entity’s assets that remains after liabilities...
11. Historical Cost
The initial cost of an asset is referred to as its “historical cost” in accounting....
1. Business Combinations
The joining of two or more businesses into one new organization is known as a...
2. Purchase Price Allocation
The practice of allocating the purchase price paid in a business combination to specific assets...
3. Purchase Consideration
Value paid by the acquirer in a company combination is known as the purchase consideration....
15. Liquidating Dividends
Liquidating Dividends are distributions of assets that are made to shareholders when a company is...
12. Compound Entries
Compound entries, also known as compound journal entries, are journal entries that involve more than...