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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…
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Trial Balance
Trial balance is a summary of all the debit and credit balances of ledger accounts.…
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Accounting – Process
Accounting cycle refers to the specific tasks involved in completing an accounting process. The length…
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Bank Reconciliation
On a particular date, reconciliation of our bank balance with the balance of bank passbook…
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Key Features of Subsidiary Books
There is a difference between a purchase book and a purchase ledger. A purchase book…