Traditional approach to accounting – Classificati...
Various approaches have been applied to financial accounts over time. Some of these approaches are traditional and modern approaches. The
Single-Entry System of Accounting
A single-entry system (also known as a cash basis accounting) involves recording transactions when the money is paid instead of when
Comparative Financial Statements
Comparative financial statements present financial information for two or more reporting periods. This can help analyze the company’s financial health
Double-Entry system of accounting
Two methods of accounting and bookkeeping are the single entry system and the Double entry system used by businesses to record their financial transaction.
Break-even points in accounting
The Break-even point in accounting is a crucial element in many businesses’ financial planning and budgeting activities. Although it is also known
What is Contra Account? – Definition, Types, Bene...
Contra accounts help determine a company’s historical cost; these accounts assist financial managers, and accountants in maintaining clean and easy-to-track
Types of Inventories
If we talk about Inventory, it goes through many stages before it gets to the customers, from purchasing raw materials
What is Marketable Securities and Examples
Marketable securities are financial liquid tools that can be converted or sold into cash within a year of investment. However,
What are Cash and Cash Equivalents?
A business that generates enough cash can meet its daily needs while staying out of debt. However, a company will
What is the operating cycle?
The operating cycle is a great way to measure the company’s efficiency to determine how smoothly operations are running and
Non Cash Expenses
Do you know? Businesses incur many kinds of expenses during their operations, but noncash expenses are one of the common
Redemption of Debentures- methods and journal entries
Companies raise funds from different sources like issuing shares, borrowing from financial institutions, retained earnings, etc. Another main source of
Statement of changes in equity
Do you know? Businesses use different methods to maintain good financial health. Most use income statements cash flow statements, balance
Issuance of shares at Par, Discount, and Premium
Table of Contents Shares are the small dominations of capital that firm issues to the general public, insiders, institutional investors,
Calculations and Interpretations of Ratio Analysis
By examining financial statements including the balance sheet and income statement, ratio analysis is a quantitative approach to acquiring insight
Redeemable and Irredeemable Preference Shares
When it comes to raising money through shareholding, companies have the option to issue different types and forms of shares.
Types of shares and their issuance
If you have decided to start a company, you must be aware of certain things to sustain your company financially.
Ratio Analysis-Types ,& Importance
Ratio analysis can provide insight into companies performance by comparing its performance and financial health over time. At the same
Capital budgeting technique
Long-term investment decisions are made through capital budgeting. It is most certainly a company’s most important financial decision and it
Accounting Treatment of Goodwill
Table of Contents The goodwill of any company is considered an intangible asset. Business goodwill is connected with business acquisitions,
Depreciation – methods, examples & accountin...
It’s crucial to look at how companies use depreciation, which can account for a large number of a company’s owners
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