Accounting

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

Depreciation is an accounting practice that helps companies allocate costs of non-current assets. It helps companies to follow the matching principles of accrual accounting as well. Let us discuss what is depreciation and the top reasons for companies to calculate depreciation. What is Depreciation? Depreciation expense or simply depreciation is the process of cost allocation

Accrued and deferred revenues are contrasting accounting entries for a business. Accrued income is received after providing goods or services. Contrarily, deferred or unearned income is received in advance before providing goods or services. Let us discuss key differences between accrued revenue and deferred revenue. What is Accrued Revenue? Accrued revenue refers to the revenue

Accounts payables and accrued expenses are similar short-term obligations of a business. While both represent short-term liabilities of a business, they differ in nature and accounting treatment for a business. Let us discuss what are the key differences between accounts payable and accrued expenses for a business. Accounts Payable – Definition Accounts payable (AP) or