Author: Termscompared

Amortization vs depletion

One of the fundamental accounting principles is matching concept. This principle requires that expenditures should be charged in the same accounting period in which the corresponding revenues are recognized. This principle is...

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Qualified vs unqualified audit report

Financial statements drawn up from books of accounts are relevant for several stakeholders of any entity. These books of accounts are drawn up by the entity itself. However certain entities are required to get their books of...

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CEO vs COO

CEO and COO are two of the highest positions in an organization. However, people are often confused about the roles and responsibilities of the two organizational positions. While it is known that the CEO is the topmost position...

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Sales vs cost of goods sold

Determining profitability accurately is essential for any business to gauge its financial performance. Selling is an important function of any business entity whose core goal is profit maximization. Apart from maximizing sales,...

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Invoice vs receipt

Preparation of documentary evidence of transactions is important for a business. Business documentation serves several purposes such as accounting evidence, audit trail, adherence to other jurisdictional laws etc. The revenue...

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