Inventory Shrinkage Definition

What is Inventory Shrinkage? When a business takes a physical count of its inventory there is normally an unexplained difference between the physical count

Last modified May 30th, 2018 by Michael Brown
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Goodwill

What is Goodwill? Goodwill is the amount by which the price paid for a business exceeds the fair value of the identifiable net assets

Last modified November 21st, 2018 by Michael Brown
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Indirect Costs

What are Indirect Costs? Indirect costs or indirect expenses, are costs which cannot be traced directly to a particular cost object. The cost object

Last modified February 28th, 2018 by Michael Brown
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Paid Up Capital

What is Paid Up Capital? Paid up capital is the amount of capital for which a business has received payment from shareholders. Paid Up

Last modified May 30th, 2018 by Michael Brown
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Capacity Cushion

The capacity cushion is the amount of spare capacity a business has expressed as a percentage of the total capacity. The capacity can refer

Last modified May 30th, 2018 by Michael Brown
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Checking Account

What is a Checking Account? A checking account is an account opened by a business with a bank to enable it to deposit and

Last modified March 23rd, 2016 by Michael Brown
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Supplies on Hand

What are Supplies on Hand? All businesses use small consumable items such as paper, pens, paperclips, light bulbs, hand towels etc. Normally a small

Last modified May 30th, 2018 by Michael Brown
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Suspense Account

What is a Suspense Account? The suspense account in accounting is a general ledger account used to make temporary unclassified transaction postings until the

Last modified May 30th, 2018 by Michael Brown
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