Throughput accounting is a principle-based and simplified version of management accounting. It provides management with decision support information to improve the enterprise’s profitability and it is relatively new in management accounting. Throughput accounting uses an approach that identifies factors that limits an organization from reaching its goal. Then it focuses on simple but effective measures… Read More

What is a statement of retained earnings? The statement of retained earnings is the second financial statement that must be prepared. It is prepared right after the income statement and before the balance sheet. In the United States, it is required by the Generally Accepted Accounting Principles whenever any comparative balance sheets and income statements… Read More

A financial statement is a formal record of the financial activities of a business. All the relevant financial information is presented in a structured manner and in a form that is easy to understand. These typically include basic financial statements that are accompanied by a management discussion and analysis. The basic financial statements are the… Read More