A financial statement is simply a snapshot of your business finances, it is a financial document that summarizes the financial position of a business entity and includes an analysis of its performance over time. As with any analysis of a business, a financial statement is only as good as the information and data available. It …
Accountants need to keep track of a lot of documents during the course of the financial year. The accounting cycle begins with the transaction and the invoice and then it passes through multiple books and ledgers such as the general ledger, sales daybook, trial balance and finally it ends up in the income statement and …
What is a 10-Column Worksheet in Accounting? (Explanation, and Example) Read More »
Organizations that have an accounting department offer bookkeeping and related assistance. Receivable and payable transactions, selling prices, salaries and benefits, capital equipment, and other such financial elements are recorded in the department’s system. A team of accountants reviews the documents of each team to monitor the company’s financial performance as well as any alterations required …
What is the Responsibility of an Accounting Department? Read More »
Service departments incur expenditures passed on to the operating departments, as those services aid the operating departments. Management, administrations, cafes, laundry rooms, and processing are just a few of the service departments that exist. At the same moment, service departments help various manufacturing units, and accounting professionals must distribute and explain all the expenditures associated …
What Are the Three Methods of Cost Allocation? (Explain and Example) Read More »
Overview Businesses around the world sell goods to customers on credit in order to boost sales. This is done to allow customers a more flexible payment plan. When a business sells its goods or services to a customer on credit, that is, when the customer is yet to pay for these goods and services, this …
How Do You Record Journal Entry for Accounts Receivable? (Explained) Read More »
Definition Accounts Payables are short-term liabilities that a business owes to its creditors including suppliers and vendors. They are a part of the current liabilities section under Liabilities in the balance sheet. The accounts payable turnover formula is in fact a measure of the short-term liquidity of a company. It measures the ability of the …
Account Payable Turnover Formula (Explain and Example) Read More »
Definition Reconciliation is an accounting process carried out by businesses in which they compare two data sets and ensure that they match. To carry out this task, businesses usually compare their own data records to external data received through a bank, a customer, or a vendor. In the process, each value on a specific date …
Types of Reconciliation in Accounting (Definition, Purpose, Explanation, and Example) Read More »
Companies periodically create their accounting records and financial statements, after a fiscal period to present a direct, precise, and comprehensive summary of their financial performance. The reports are crucial not just for corporate strategizing, but also for auditors, who depend on the businesses they assess to be accurate. Ensuring that the assertions in the financial statements …
What are the Assertions in Accounting? (Explanation and Example) Read More »
All businesses are built on various functions in which they are experienced. The actions of companies contribute to the increase in production and the expansion of the organization. Every company sets together a variety of rules and procedures to ensure that these operations operate as efficiently as possible. To ensure that they abide by all the government regulations …
Introduction Balance sheet is a very important tool for investors and businesses alike. It is also known as a sheet of financial position because it contains a business’s financial position. It contains everything that is required to evaluate the financial position of a company. It contains every bit of information about the assets that the …
