Financial Accounting

Non-sufficient Fund (NSF) Checks refer to the status of checking accounts that do not have enough money to cover transactions. It is described as the fee charged when a check is represented but cannot be used by the balance in the account. They are also referred to as bounced checks. If the bank receives a […]

The owner’s drawings and dividends are two different methods of withdrawing funds from a business. Although both methods have similar impacts on a business and for business owners, they work differently. Let us discuss what are owner’s drawings, dividends, and salary methods and their implications for business owners. What is Owner’s Drawing? Owner’s drawing, owner’s

Definition of Foreign Exchange Gains and Losses Foreign exchange gains and losses are referred to as losses that are incurred when a company purchases goods and services in foreign currency. The currency fluctuation exists on a normal basis, and as a result of this fluctuation, there is a difference in monetary assets and liabilities, which

What is meant by Repairs and Maintenance Expense? Repairs and Maintenance Expenses can be defined as costs that are incurred in order to restore the condition of the asset. The proper accounting that is incurred for these costs is to charge them to the respective expense period when the cost is actually incurred, as per

Accumulated Depreciation is referred to as the total amount a company depreciates its assets with. On the other hand, depreciation is referred to as the amount with which the company’s assets are depreciated in a given period. Essentially, accumulated depreciation is referred to as the total amount of a company’s cost that has been allocated

Adjusted and post-closing trial balances are two stages of preparing a trial balance statement after the initial unadjusted entries. Both represent the summaries of ledger accounts of a business. Both types of statements are non-formal and offer valuable information for the preparation of financial statements. Let us discuss what are adjusted and post-closing trial balances

A bank overdraft is a short-term credit facility that allows borrowers to withdraw funds with zero account balances. It is a flexible credit facility that helps borrowers in cash flow management. Borrowers only incur interest payments for the negative balance when utilizing the facility. Let us discuss what is an overdraft, its accounting treatment, and

Credit notes and debit notes are important supporting documents for buyers and sellers for their trade transactions. These documents help both parties settle their mismatching transactions. Both documents serve similar purposes to both parties with contrasting accounting entries. Let us discuss what are credit and debit notes and their key differences. What is a Credit

A salary and wages may sound similar. However, they are both different remuneration packages for different kinds of workers. Let us discuss what is salary and wages, and what are the key differences between them. What is a Salary? A salary is a fixed remuneration paid to an employee against services rendered to an employee.

Depreciation is a tax-deductible expense for businesses. It is an accounting method of spreading the cost of assets over several years. Businesses can deduct the depreciation expense for qualified assets and use the allowed methods. Let us discuss what is the depreciation expense and is it tax-deductible. What is Depreciation? Depreciation is the method of