Definition of suspense account: A suspense account is a temporary account where all the suspicious and unclear transactions of the accounting system are parked. However, … Read more
Definition A Contra account is the creation of an opposite account balance in the balance sheet. It helps to reduce the normal account balance without … Read more
Fictitious assets meaning/definition Fictitious assets are not an asset in reality. However, these assets are recorded in the balance sheet to reflect a true sense … Read more
Definition Accumulated depreciation is the contra account created in the accounting record to offset the use/depreciation of assets. We do not directly reduce the cost … Read more
Five elements of the financial statement include the balance sheet, income statement, statement of cash flow, statement of changes in equity, and the notes to … Read more
Notes receivable is the written promise to receive principal and interest in the future. In simple words, note receivable is a written, unconditional promise by … Read more
ERP is an advanced system of business management that integrates different operating modules and business intelligence. It helps in effective business management with real-time reports … Read more
The concept of materiality helps an accountant decide which account balances should be disclosed separately and which of the account balances should be merged. The … Read more
Financial accounting is a branch of accounting that deals with the recording, summarizing, and reporting of financial information within an organization. In other words, financial … Read more
Understanding accounting principles and concepts provide a strong base for you to prepare a set of financial statements. Following accounting principles is necessary to meet … Read more
US GAAP or the United States GAAP is a set of accounting principles set by IFCA to monitor and regulate the accounting profession in the … Read more