Accounting

Depreciation, amortization, and depletion are all cost allocation methods for different types of long-term assets owned by businesses. All of these are accounting terms with non-cash entries and effects on profits. These accounting methods help companies follow the accrual accounting principles of matching entries. Let us discuss what these terms and the key differences between

The current and quick ratios are good indicators of the short-term liquidity of a business. These ratios can also provide help in analyzing the long-term solvency as well. Both ratios use a similar form of current assets and current liabilities. However, the interpretation of both these ratios varies with some key differences. What is the

What is a Quick Ratio? The quick ratio is the short-term liquidity test of a business. It is an accounting ratio that measures the ability of a business to pay current liabilities using cash and cash equivalents. The quick ratio considers assets that can be converted quickly into cash, hence the name quick ratio. The

A nominal ledger is the primary source document for the accounting records of a business. It forms the basis of an accounting system in any business. Nominal ledger records all financial transactions categorizes them into different classes and provides useful information to the users. Let us discuss what is a nominal ledger, how it works,

Goods received note (GRN) is a confirmation of the goods received from the seller. It is issued by the buyer with multiple copies. A GRN serves many purposes for the buyer, the shipping company, and the seller. Let us discuss what is a goods delivery note, how it is issued, and what are its advantages