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Business Entity Concept
According to this concept, the business and the owner of the business are two different…
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Method of Depreciation
Depreciation can be calculated using any of the following methods, however the most popular methods…
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Accounting Entries Related to Assets and Depreciation
Let us see the accounting entries related to assets and depreciation: S.No.ParticularsJournal Entries1Purchase of Fixed…
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Why Do We Need to Account for Depreciation?
Here is why we need to provide depreciation: ● To ascertain the true profit during a…
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Financial Accounting – Depreciation
Depreciation reduces the value of assets on a residual basis. It also reduces the profits…
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Cash vs. Accrual Basis of Accounting
Cash Basis of Accounting Cash Basis of Accounting uses receipts and payments of cash to…
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Current Liabilities
Like current assets, current liabilities are immediate liabilities of the firm that are to be…
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Current Assets
Assets that are convertible into cash within the next accounting year are called current assets.…
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Owner’s Equity
The equation of equity is as follows: Owner Equity = Assets – liability The owner…
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Financial Statements
Financial statements are prepared to ascertain the profit or loss of the business, and to…