What does it mean by Q1?
Q1 means the first quarter of the year, composed of the first three months, including January, February, and March. Subsequent months after March fall in … Read more
Accounting
Accounting cycle (all you need to know)
Accounting cycle is a series of steps performed to generate financial statement for the business. Any error or omission in any of the stages has … Read more
What is the Cost of Sales in Accounting?
Cost of sales is a direct cost required to manufacture the product or sell the services. It’s shown right after net sales in the income … Read more
Statement of changes in equity (All you need to know)
This statement helps to understand the wealth of the company owner and how it has changed in the years under consideration. Mainly, there are three … Read more
What is the ECL model under IFRS-9?
ECL or expected credit loss model is applied to accounts receivables. In simple words, it’s a modern approach to expect provision and apply it to … Read more
IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors
IAS 8 is about implementation of accounting policies, the accounting for changes in estimates, and the correction of prior period errors. The standard establishes rules … Read more
Summary of (IAS 10) – Events after the Reporting Period
International Accounting Standard IAS 10 comes into the part when an organization has to make post-reporting period modifications to the accounts it keeps; and the … Read more
Summary of IAS-2 (Inventory valuation)
IAS-2 (inventory valuation) is about calculating and recording the value of the inventory items. These inventory items include raw material, finished goods, and goods in … Read more
Tax avoidance vs tax evasion, important information for business owners
Despite their similarities, tax avoidance and evasion are not the same things. Avoiding taxes is not the same thing as evading taxes. The alternative approach … Read more
Cash vs. Accrual Accounting; what’s the Difference?
Before choosing an accounting approach for your business, you must know the primary differences between cash Vs accrual accounting. By recognizing their distinctions, you may … Read more
General ledger Vs Sub-ledger
Accounting accuracy is the foundation of organizational stability and development and that is why an accountant needs to know the difference between the General ledgers … Read more
What is the cost concept of accounting
Cost concept of accounting records assets at their respective cash values at the time of acquisition or purchase. The recorded value of the assets cannot … Read more
What is project accounting?
Expenditure, invoicing, and revenue are only some of the elements at the foundation of project accounting, which is a subset of general accounting. Project administrators … Read more
What is contingent consideration?
In the context of a business acquisition, contingent consideration refers to the obligation of the acquiring company to provide additional assets or equity interests to the … Read more
What is the prudence concept in accounting?
As per the prudence concept in accounting, a firm should not overestimate its revenues, assets, or profits, nor should it underestimate its obligations, losses, or … Read more
What is merchandise inventory?
Merchandise Inventory is the term frequently asked. Retailers, wholesalers, and distributors earn money by obtaining items from manufacturers or other suppliers and then marketing, or … Read more
Is retained earnings an asset?
It is the most frequent question being asked by accounting learners, “Is retained earnings an asset?” Typically, retained earnings reflect a corporation’s earnings from its … Read more
What is depreciation in accounting?
Depreciation in accounting is when you make a proportion of the depreciable amount and charge it in the income statement. The proportion is calculated by … Read more
What is the full disclosure concept principle in accounting?
Objective Full disclosure is an accounting concept to ensure the financial statement user gets all the relevant information. Definition This concept requires a business to … Read more
Accounts payable in accounting
Accounts payable is the balance that needs to be paid to the vendors/suppliers. It’s a credit balance in the balance sheet of the company. Following … Read more