This category covers various aspects of financial accounting such as basic accounting, principle of accounting, accounting treatment as well as financial statements or financial reporting.
The book value or carrying of an asset defines its cost less any accumulated depreciation over its life. Sometimes, if a company choose to use the fair value method of valuing its assets, their book value will represent the revalued cost of the assets less any accumulated depreciation. Apart from accumulated depreciation, the carrying value […]
Accounting for Deferred Tax: Everything You Should Know About! Read More »
When it comes to bank transactions, two documents can confirm the bank balance of a company. This first document, or rather a ledger, is the bank book of the company. The bank is an internally prepared document that shows the company’s side of transactions. The company carries over the balance from its bank book to
How to Prepare Bank Reconciliation? A Step-by-Step Guide Read More »
The Depletion method of depreciation is a cost allocation method that works for depleting natural resources. The accounting working for depletion works similarly as in depreciation of tangible assets or amortization with intangible assets. As the natural resources or assets “deplete” with extraction over time, the term is used as a depletion method of depreciation.
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In this article, we cover the difference between cost control and cost reduction. This starts from the overview of costs structure of a business and continue to the key definitions of both cost control and cost reduction. Then, we will jump to the key differences between cost control and cost reduction. Now let’s go through
Difference between Cost Control and Cost Reduction: All You Need to Know! Read More »
In this article, we will cover in detail about the financial analysis techniques or tools in order to analyse financial statements. This ultimate guides of the financial analysis techniques will provide you an insights how to use various techniques or tools in performing the financial analysis of financial statements of a company. Reading financial statements
Financial Analysis Techniques or Tools, The Ultimate Guides Read More »
Overview Financial statements are reports that provide information to their users regarding different aspects of the business. All businesses must produce financial statements. Sometimes, businesses prepare financial statements because they are required by relevant rules and regulations. However, some businesses, that are not required by rules and regulations, may also prepare financial statements voluntarily to
What is Common Size Balance Sheet? Read More »
Financial accounting rests on two pillars of recording and summarizing the accounting records. These accounting records from registering in a ledger to analyzing and interpretation must follow some rules. Without following rules the data presented and evaluated would be null and void. There are several accounting principles or concepts that a business can follow or
The Consistency Principle in Accounting Read More »
The Money measurement concept is one of the basic accounting principles or theories that form part of the larger set of accounting rules. Record keeping and performance measurement are key components of an accounting cycle. Financial accounting is based on several principles such as business entity concept, historical cost, accrual basis accounting principle, matching principle,
The Money Measurement Concept: Definition, Important and Example Read More »
Overview In this article, we will cover the accounting for treasury stock. Before jump to detail, let’s understand the overview as well as the key definition of treasury stock. Modern businesses structures have evolved greatly. There are many forms of businesses that are common today. These may include forms such as sole proprietorship, partnership or
Accounting for Treasury Stock: Overview and Examples Read More »
Overview In this article, we will cover all aspect of preferred stock including its types, valuation of preferred stock and example. Company issue their stocks or shares in the stock market that common public or other companies can buy to become the owner of the company. They are also called shareholders of the company. When
Preferred Stock: Overview, Types, Valuation and Example Read More »
