Accounting is defined as the process of identifying, measuring, summarizing, recording, classifying and presenting the financial transactions in an appropriate manner.
The aim of consistency principle is to preserve the comparability of financial statements. It requires that rules, practices, concepts and principlesused in...
Accounting cycle is a step by step process of collecting, summarizing, recording andpresenting financial information. The Accounting process can be divided...
The concept of prudence requires being careful when estimating figures in an uncertain situation to ensure the assets and incomes are not overstated. Likewise the concept requires in case of
The purpose of financial statements is to provide user with information which is relevant and adequate, however, at the same time it should not be excessive. The standard of materiality
Accounting statements should disclose fully and completely all the significant information to enable users to take informed decisions. To be useful to users, financial statements must present relevant information. Much
Generally Accepted Accounting Principles (GAAP) refer to common principles, standards and policies for accounting as defined by standard setting board with aim to improve consistency, clarity and comparability of the
Under double entry, every transaction is recorded with two effects. i.e. Debit (Dr.) and Credit (Cr.)such that the value of Debit and Credit is equal in every accounting entry.Below are
Some general ledger accounts such as accounts receivable or accounts payable are made up of many sub-components, For example, a company may have many debtors (credit customers) and multiple transactions
Financial statements are the information are a set of following 5 components: Balance Sheet also called Statement of Financial Position; Profit & Loss Account also called Statement of Profit and
The frequency of preparing and reporting financial statements to users depends on following factors: Territory in which business ins registered Legal status of the Company Any specific sector reporting requirement
Reporting framework is the set of rules under which a company prepares its financial statements. The set of such rules varies from country to country. Generally, it would include requirements
