Balance Sheet Analysis
How to analyse a UK balance sheet using financial ratios, trend analysis and common-size techniques to assess liquidity, solvency, asset …
Concepts
Plain-language explanations of important accounting and finance terms.
Depreciation Methods Explained
A practical guide to the straight-line, reducing balance and units of production depreciation methods used by UK businesses, with worked …
Financial Management
Financial management covers planning, monitoring, and control of a company’s financial resources. Learn about methods and tools for …
What Are Accounts Payable?
A guide to accounts payable (trade creditors) in UK accounting, covering recognition, management, and their impact on cash flow and the …
What Are Accounts Receivable?
A guide to accounts receivable (trade debtors) in UK accounting, covering recognition, measurement, credit control, and bad debt management.
What Are Accruals?
A guide to accruals in UK accounting, covering the accruals concept, journal entries, and how accrued expenses and income are reported under …
What Are Annexes in Accounting?
Explained: attachments — legal requirements, content, types, and storage.
What Are Contingent Assets?
A guide to contingent assets in UK accounting, covering the definition, recognition and disclosure rules, common examples, and the treatment …
What Are Contingent Liabilities?
A guide to contingent liabilities in UK accounting, covering the definition, recognition criteria, disclosure requirements, and their …
What Are Creditor Days?
A guide to the creditor days ratio in UK accounting, covering the calculation, interpretation, industry benchmarks, and how it fits into …
What Are Current Assets?
A guide to current assets in UK accounting, covering the main types, their valuation, and how they appear on the balance sheet under FRS …
What Are Dividends?
A guide to dividends in UK accounting, covering the types of dividends, the legal requirements for distribution, accounting entries, and …
What Are Drawings?
A guide to drawings in UK accounting, covering the definition, accounting treatment, tax implications, and how drawings differ from salaries …
What Are Fixed Assets?
A guide to fixed assets in UK accounting, covering classification, depreciation methods, revaluation, disposal, and reporting under FRS 102 …
What Are Fixed Costs?
A guide to fixed costs in UK accounting, covering the definition, examples, their role in break-even analysis, operating leverage, and how …
What Are Intangible Assets?
A guide to intangible assets in UK accounting, covering types of intangibles, recognition criteria, amortisation, impairment, and reporting …
What Are Liabilities?
A guide to liabilities in UK accounting, covering current and non-current liabilities, recognition criteria, and how they are presented …
What Are Overheads?
A guide to overheads in UK accounting, covering the definition, classification, allocation methods, and how overheads are reported on the …
What Are Prepayments?
A guide to prepayments in UK accounting, covering how to recognise, record, and release prepaid expenses with practical examples.
What Are Provisions?
A guide to provisions in UK accounting, covering recognition criteria under FRS 102, common types of provisions, and how they are measured …
What Are Retained Earnings?
A guide to retained earnings in UK accounting, covering the calculation, their role on the balance sheet, distributable reserves, and …
What Are Tangible Assets?
A guide to tangible assets in UK accounting, covering classification, initial measurement, depreciation methods, revaluation, disposal, and …
What Are Trade Creditors?
A guide to trade creditors in UK accounting, covering the definition, balance sheet presentation, creditor days, payment terms, and the …
What Are Variable Costs?
A guide to variable costs in UK accounting, covering the definition, examples, their role in break-even analysis and contribution margin, …
What is a Cost Centre?
How cost centres work in UK management accounting, including types, allocation methods, reporting structures and their role in budgeting and …
What is a Journal Entry?
A guide to journal entries in UK accounting, covering the format, types, and practical examples of how transactions are recorded in the …
What is a Ledger?
An explanation of ledgers in accounting, covering the general ledger, subsidiary ledgers, and how they form the backbone of UK financial …
What is a Profit and Loss Account?
How the profit and loss account works in UK accounting, covering the standard format, key line items, the difference between UK and …
What is a Share Premium Account?
A guide to the share premium account in UK company law, covering how it arises, what it can be used for, and how it is reported on the …
What is a Suspense Account?
A guide to suspense accounts in UK accounting, covering when they are used, how entries are posted, how to clear them, and what to do if a …
What is Bad Debt?
Bad debt arises when a customer fails to pay an amount owed. This guide explains how to account for bad debts, create allowances, and claim …
What is Capital Expenditure?
A guide to capital expenditure in UK accounting, covering what qualifies as capex, how it is capitalised and depreciated, and how capital …
What is Cash Flow?
A guide to cash flow in UK accounting, covering the three types of cash flow, how to monitor and improve cash flow, and why profitability …
What is Cost of Goods Sold?
A guide to cost of goods sold in UK accounting, covering the calculation, stock adjustments, its relationship with gross profit, and …
What is Credit in Accounting?
A guide to credit entries in double-entry bookkeeping, covering credit rules for different account types with practical examples for UK …
What is Debit?
An explanation of debit with rules for different account types and concrete examples of double-entry bookkeeping.
What is Deferred Income?
A guide to deferred income in UK accounting, covering the definition, journal entries, balance sheet presentation, and treatment under FRS …
What is Deferred Tax?
A guide to deferred tax in UK accounting, covering how timing differences create deferred tax assets and liabilities, the calculation …
What is Equity?
A guide to equity in UK accounting, covering share capital, retained earnings, reserves, and how equity is reported under the Companies Act …
What is Goodwill?
A guide to goodwill in UK accounting, covering how it arises in business acquisitions, its measurement, amortisation under FRS 102, and …
What is Gross Profit?
A guide to gross profit in UK accounting, covering the calculation, its place on the income statement, gross margin analysis, and reporting …
What is Net Profit?
A guide to net profit in UK accounting, covering the calculation, its position on the income statement, net margin analysis, and reporting …
What is Operating Profit?
A guide to operating profit in UK accounting, covering the calculation, its position on the income statement, operating margin analysis, and …
What is Profit Margin?
A guide to profit margins in UK accounting, covering gross margin, operating margin, net margin, sector benchmarks, and how margins are used …
What is Revenue Expenditure?
A guide to revenue expenditure in UK accounting, covering the definition, common examples, the distinction from capital expenditure, and the …
What is Stock Valuation?
A guide to stock valuation in UK accounting, covering the permitted valuation methods, the lower of cost and NRV rule, and the effect on …
What is the Break-Even Point?
A guide to break-even analysis in UK accounting, covering the calculation, contribution margin, break-even charts, and how businesses use …
What is Turnover?
A guide to turnover in UK accounting, covering the definition, recognition rules, VAT treatment, and how turnover is reported under FRS 102 …
What is Work in Progress?
A guide to work in progress (WIP) accounting in the UK, covering valuation methods for manufacturing and service businesses, balance sheet …
What is Working Capital Management?
How UK businesses manage working capital through the cash conversion cycle, debtor and creditor days, inventory control and ratio analysis …