Accounting

Definition: When it comes to accounting, accretion is the steady time-bound growth reflected on a business’s earnings and assets due to its overall success, market growth, or if the business undergoes a merger or acquisition. Understanding accretion is important. However, there is a slight difference between accretion and accretion expense. The accretion expense, similar to […]

Background Authorized and approved supports must support accounting entries. This procedural formality is implemented to bring an element of reliability to the users of financial statements. Some documents are generated to support the transaction when the business performs some activity. These documents may be internal/external depending on the nature of the transaction posted in the

Definition: Materiality is one of the essential accounting concepts and is designed to ensure all of the crucial information related to the business are presented in the financial statement. The purpose of materiality is to ensure that the financial statement user is provided with financial information that does not have any significant omissions/misstatements. If there

Accounting principles are the guidelines and rules that the business needs to follow while reporting financial data/information. These rules are standard procedures and a common set of principles that provide the basis for the financial accounting policies adopted by the business. These principles apply to the whole set of the financial statement, including assets, liabilities,

A cash receipt is issued when a cash transaction takes place and the payment is made through cash or cash equivalent. A cash receipt is an integral part of any accounting system. It has several uses including records for cash sales, balancing accounts receivable and payable, and reconciliation of accounts. Let us discuss the cash

Definition The control account is a summarized account in the general ledger. It contains aggregated total for the transactions that are posted in the subsidiary ledger. It is also called a controlling account because it enables us to perform reconciliation control on the ending balance. In other words, control account enables us to reconcile the

The Bank reconciliation process involves comparing internal and external bank records to ensure that all the transactions have been properly recorded. The primitive reason to do a stringent bank reconciliation process is to ensure no discrepancy between actual and recorded transactions. Two main documents are required during the bank reconciliation process. They include the internal

Relevance and reliability are two accounting terms that occupy an important place in accounting. When it comes to the conceptual frameworks in accounting, it is impossible to ignore relevance and reliability and still give out accurate information. Accounting information is prepared for different reasons. The importance of this information to individuals and businesses cannot be

Accounting reports are very vital in the running of any business. So, you may be wondering where working papers will be in the entire reporting business. Auditors and accountants prepare working papers as additional support for accounting statements. With a working paper, it becomes easy to summarize the data used by the accountant in the

Accrued vacation is a vital concept in accounting for businesses. To understand accrued vacation, you may have to first realize that employee vacation is necessary for every organization. Not only does it give your hardworking workers the opportunity to unwind, but the organization also benefits so much from it. A stressed-out employee may not give