What is an uncredited cheque/outstanding lodgment?
Uncredited cheques are the cheques that have been collected by the business and recorded as the receipt of cash in the business books. However, the … Read more
General Accounting
What is price level accounting?
Definition and explanation Price level accounting seeks to adjust financial statements due to fluctuation in the value of the currency. The currency fluctuation may be … Read more
Analyzing business transactions
Analyzing business transactions is the basis of a strong financial reporting framework. The posting of accounting transactions in the accounting record leads to changes in … Read more
What are the profitability ratios?
Profitability ratios help understand the profitability of a business at different stages of the income statement. For instance, the gross profit ratio helps to understand … Read more
What is service rendered?
Businesses generate revenue from rendering services and the sale of tangible products. Income generated from service rendered is referred to as service revenue. The transaction … Read more
Consolidation, mergers, and joint ventures
Consolidation, mergers, and joint ventures are the concepts of the business when a business acquires another business. The arrangements may be different from company to … Read more
GAAP and principles
GAAP refers to generally accepted accounting principles. It’s a set of procedures, accounting principles, and accounting standards related to business reporting and financial accounting. The … Read more
What is bookkeeping in accounting?
Bookkeeping accounting uses the basic accounting concepts in keeping a record of the business transactions and presenting them to an accountant for their perusal to … Read more
Financial accounting and Managerial accounting
Financial accounting is about financial transactions and accounting systems. The end product of financial accounting is the preparation of the financial statement. The scope of … Read more
IFRS 16 implementation and embedded challenges
Today, the biggest check in the list of compliance is the implementation of the IFR-16. An idea to recognize the right to use in the … Read more
Current Expected Credit Losses-(CECL) a new challenge?
Current expected credit loss-(CECL) was introduced by the Financial Accounting Standard board in 2016. CECL model changes the allowance recognition from incurred mode to expected … Read more