Accounting

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

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

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 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

The accounting for bond retirement is based on the principles of liability. In simple words, if the bond is retired, liability is removed from the … Read more

Accounting is one of the hardest aspects of corporate management. The intricacy of the accounts used to classify money movement is only one of the … Read more

A post-closing trial balance is a statement that is a statement of all balance sheet accounts having a balance of greater than zero at the end … Read more

What is meant by Recurring Expense? Recurring expense is also known as recurring costs as the name suggests are repeating expenses. They are brought about … Read more

For an effective business management, it’s necessary to understand asset vs. expense. So, If you have started up a business or already have one, you … Read more

Statement of owner’s equity help to understand the current wealth owned by shareholders/owners. The movement of balance in the statement indicates whether the business has … Read more

Marketing expense is an essential expense for companies to grow and promote their products and / or services. Good marketing has become vital in today’s … Read more

The accounting for short term deposits depends on if you have received/paid the deposit. So, there can be two situations. You have paid the deposits. … Read more

Accounting for inventory involves different items like accounting for purchase, accounting for work in process, accounting for finished goods etc. Let’s go through each of … Read more

Accounting for sales/sales return is simple and straightforward. There are two possible scenarios when you make sales. The sales may be on credit and on … Read more

A long term deposit is when you pay/receive deposit for a time of more than twelve months. The accounting treatment for the long term deposit … Read more

Accrued wages are the wages that an employee has worked for. However, the company has not paid them as of the accounting period end.  At … Read more

Following are some of the well-known limitations of the cash flow statement. 1-Liquidity assessment Although cash flow statement shows the cash status of the company, … Read more

Periodicity assumption states the company needs to report financial information in such a manner that the current period can be compared with the previous periods. … Read more