What is a Cash Receipt? Definition: A cash receipt is a printed or written statement of an amount received from a customer during a cash sale transaction. At one time or another, you must have received a receipt at a transaction or payment point. The receipt is commonly referred to as a cash receipt. The
What is a Cancelled Check? Definition: A cancelled check is the check that is returned to the payer as a receipt for the funds that were disbursed to the payee’s bank account. It refers to the cashing of a check by a payee after receiving a payment from a payer. It is a canceled, prevented
What is Contractionary Monetary Policy? Definition: A contractionary monetary policy is a governmental economic effort to fight inflation by decreasing the money supply. When an economy is under an attack of inflation, the central bank must make the appropriate move contain it. In such a scenario, it applies the Contractionary Monetary Policy. The presence of
What is Change in Demand? Definition: Change in demand is the shift in the demand curve, either up or down, brought about by a change in a determinant of demand, with price remaining constant. The shift in demand is more large-scale and has far-reaching implications compared to change in demand quantity. Understanding Change in Demand
What is Budget Reporting? Definition: Budget reporting is a process that entails comparing financial achievements over a given period with targeted or estimated figures. By comparing the actual and estimated figures, owners, executives, or investors can ascertain whether a business is on track to achieve its objectives. Understanding Budget Reporting Budget reporting also goes a
What is Book Value? Definition: Book value of equity is a financial metric that refers to the amount that investors receive when all liabilities are subtracted from company assets. The metric tries to outline the minimum amount that a business is worth. Likewise, book value indicates the amount that investors and creditors would receive upon
What is a Bond Indenture? Definition: Bond Indenture refers to an agreement associated with bond issuance. Likewise, it is a legal document between a bondholder and the bond issuer. The contract details and records the obligations of the person or firm issuing the bond as well as the benefits owed to the bondholder. The capital
What is Average Variable Cost? Definition: The average variable cost is simply a cost associated with the number of goods or services produced. The cost varies depending on the production volume. Similarly, whenever the production volume goes up, the average variable cost would also edge higher. Likewise, whenever production volume drops, the total average variable
What is Allocative Efficiency? Definition: Allocative efficiency is simply the production of a good or service demanded by customers at a price that is beneficial to both parties. Likewise, it’s a attribute of an productive market where capital is allocated efficiently in the production and distribution of goods and services. To achieve optimal distribution, a
What is an Accounting Worksheet? Definition: An accounting worksheet is a spreadsheet tool used to record all accounting information used in the preparation of financial statements. Accounting worksheets are designed to ensure financial statements prepared by a business are accurate and devoid of any errors. Public companies must prepare financial statements to show how they