Accounting is the process of recording, collecting, analyzing, and verifying all financial transactions of a business according to accounting principles. This helps businesses understand their financial position in terms of profit/loss, assets/liabilities, etc., allowing them to make wise decisions. The article provides definitions and explanations of common accounting terms and concepts such as revenue recognition, income statements, balance sheets, and accounting methods. It also lists accounting career options and explains accounting processes like auditing.

1. Accounting | Buzzle.com
Simply put, accounting is the process of recording, collecting, analyzing, and verifying all possible
financial transactions carried out in a business. The information is recorded in accordance to certain
accounting principles, also referred to as Generally Accepted Accounting Principles (GAAP). This
accounting process helps businesses understand their financial position; their profit/loss,
liabilities/assets, etc., which help them make wise decisions for the firm's growth and betterment.
There are plenty of articles provided in this section explaining the different aspects of accounting in
detail. Take a look!
Economic Profit Vs. Accounting Profit
Economic and accounting profits are both financial entities that help measure the performance of
the company. The economic profit vs. accounting profit article below elaborates on the key
differences between the two.
Ledger Balance Explained
A ledger balance is nothing but the difference between the debits and credits of a ledger account for
a given accounting period. This Buzzle article explains the concept with the help of an example.
What is the Meaning of Fixed Expenses?
Fixed expenses do not vary with the change in production; they remain constant. This Buzzle article
furnishes its meaning in detail along with examples.
5 Revenue Recognition Methods
Revenue recognition policy impacts the representation of your financial statements as well as the tax
liability to be computed thereon. There are various revenue recognition methods which have to be
adopted as per the peculiarity...
Differences Between Capital and Revenue Expenditure
Expenses can be of capital or revenue in nature. This classification is vital so that the financial
statements reflect the true position of the entity. Buzzle, in the following article, furnishes

2. information about the differences...
Net Sales Vs. Gross Sales
Before starting a company, you should understand the comparison of net sales vs. gross sales. The
article below highlights the difference between the two entities.
Accounting Process
Accounting is used for gaining quantitative information about the finances. The accounting process
includes a sequence of activities that involve recording the income and expenditure of an
organization. This Buzzle article will...
Purpose of Accounting
Companies invest a lot of time and money in maintaining their accounts. Besides being a mandatory
requirement, maintaining proper accounts can help the company in various ways. Listed below are
some of the reasons why it is so...
Internal Controls in Accounting
Accounting is a crucial field that demands compliance with many standards and statutory
requirements. Internal controls in accounting are not only a statutory requirement, but are also
instruments of financial management.
Cost Control Management
In this world of cut-throat competition, it is essential for a company to adapt to changes in the long
run. Cost control is, basically an adaptation by companies to improve their profitability with less
expenses.
Expense Report Sample
Organizations use an expense report to record the expenditure incurred by the employees during a
business trip. In this article, we will take a look at some sample expense reports.
An Introduction to Financial Accounting
Accounting is a very important/critical process, with the help of which, the management of an
organization attempts to manage and control its economic performance. If you are an accounting
student, or aspire to pursue your career...
Basic Accounting Concepts and Principles
Accounting refers to the systematic recording of business transactions and preparation of
statements relating to assets, liabilities and functioning results of a business. Accounting has to
follow certain fundamental rules that...
Accounting Profit Formula

3. The growth of a business depends on the accounting profit earned in a financial year. That makes it
imperative for any business to track and calculate it. Here, we have provided the formula for
calculating accounting profit along...
Cost Method of Accounting
To explain the cost method of accounting in simple terms, an investor lists his investment expense or
the actual cost of the stock on a single line of an investment balance sheet. Likewise, when he sells
the stock, the income would...
Job Cost Sheet
Do you need to make a job cost sheet in order to keep track of the costs incurred in providing
services to customers? If yes, then in this article, you will learn how to draft a cost sheet with the
help of a template.
U.S. GAAP - Generally Accepted Accounting Principles
U.S. GAAP is the standard platform of guidelines regarding rules for financial accounting that're
needed in the preparation of financial statements. Although quite flexible in its rules, this framework
is based upon certain...
Types of Accounting Careers
If you are good with numbers, then a career in accounting must be explored. Let's take a look at
some of the different types of careers in accounting.
Hybrid Method of Accounting
With the steady rise in the volume and sizes of businesses, conventional accounting evolved into
double entry systems, subsequently cost accounting and managerial accounting were also
introduced. Today, the world of finance, is yet...
Cost Method of Accounting for Investments
The cost method of accounting for investments is used to determine the profit and loss of any
investment. Apart from that, this method is also used to compute the return on investment of a
certain investment. To know more about...
Cash Method of Accounting
The cash method of accounting is a well-known and widely used technique which has some
advantages and disadvantages. In this article, we shall know about this accounting technique in
detail.
Accrual Method of Accounting
How does the accrual method of accounting expenses work? This might be a question before many
students of accounting and finance. In this article, I shall present to you the workings of this method
as well as its rules and...

4. Job Costing Vs Process Costing
If you are confused about what exactly is the difference between job costing and process costing,
this article will help in clearing out the concept. Here I compare the two processes.
How to Calculate Net Income after Taxes
If you are looking for clear guidelines explaining the calculation of net income after taxes, this
article will definitely be a helpful read. Along with an explanation of the procedure, an online
calculator is presented, which...
Gross Sales
There are various metrics through which an organization can gauge its efficiency. The total sales of
a company are measured by calculating its gross sales. Let us know more about the topic.
Liability Vs. Expense
In the following Buzzle article the comparison of liability vs. expense has been given, by enlisting a
few of their distinguishing points. Keep reading...
Audit Procedures for Cash
Every organization must have checks and balances to ensure transparency and accountability in
financial matters. The cash audit is one such procedure that every business puts in place. Read
through this article to learn more about...
Percentage of Completion Method
An accounting method, percentage of completion is used to evaluate the cost of ongoing long term
projects by computing the cost of the project in the current fiscal year. This method to ascertain cost
has a very effective formula...
Accounts Receivables Turnover Ratio
This ratio is an indication of the efficiency of a company in collecting credit sales. While computing
this ratio only credit sale is included. The higher the ratio means greater the efficiency which is a
desirable aspect for any...
What Is Cost Accounting
When one indulges in business, cost accounting is the most essential component that systematically
evaluates the costs that the organization incurs.
Objectives of Accounting
The financial plans of any firm or business depends on the accounting objectives. In this article, we
will take a brief look at what are the primary objectives of accounting and try to understand the
influencing factors and the...
Unearned Revenue

5. What is unearned or deferred revenue? How is the liability associated with it calculated? Read to
find all the answers.
Revenue Recognition Principle
Are you coping with accountancy and its various principles? Well, as far as the revenue recognition
principle is concerned, help is here!
Cost Sheet Template
The objective of any cost accounting, costing, and cost sheet, is simple; derive the cost of goods
based upon the cost that has been incurred to manufacture those goods.
Examples of Intangible Assets
Assets are classified into two main types - tangible and intangible. Go through this article for some
information about intangible assets.
Accrued Liabilities
Being aware of the accounting concepts under GAAP is essential for all accountants and students of
management and accounting. The article below explains what accrued liabilities are.
Cost Recovery Method
This article aims at explaining the cost recovery method in accounting, along with an example. Read
to know all about this important accounting technique.
Generally Accepted Auditing Standards
It is absolutely essential for an independent auditor to comply with the '10 Generally Accepted
Auditing Standards (GAAS)'. This Buzzle article enlists these standards, to help you understand what
it takes to achieve quality...
Accounting Conventions
A thorough knowledge of accounting conventions and practices is very essential for all accountants,
management students, as well as businessmen.
Profit Margin Ratio
This article will tell you all about the profit margin ratio and what it indicates for a business. While
the turnover is an important consideration, it is this ratio that ultimately denotes the financial health
of a business.
What is Contribution Margin
All you ever wanted to know about a contribution margin has been explained in this article. By
calculating this valuable parameter, important decisions about the future of a product can be made.
Accrued Expenses in Accounting

6. In the following article, the financial concept of accrued expenses has been discussed. To know more
about accrued expenses, read on.
Prepaid Expenses in Accounting
The concept of prepaid expenses is occasionally used in financial, cost, and managerial accounting
policies. Read this Buzzle article to know more about the subject.
Accounts Payable Procedures
Accounts and finance departments often deal with a type of liability known as accounts payable. In
the following article, a brief elaboration on some of the general procedures for listing accounts
payable is given.
What is Accrued Revenue?
The accounting concept of accrued revenue is discussed in this article. Read to know all about this
important parameter.
What is Owners' Equity
It is important for all businessmen to be aware of what owners' equity is and how it is quantified. In
this article, we explain the concept, along with the formula used to calculate the same.
Tangible Assets
The concept of tangible assets is extremely easy to understand. Find out how, in the article below.
What is Accounts Payable
This article is a brief explanation of what the term, accounts payable means in accounting parlance.
Read to know all about this vital financial parameter.
Accounting Cycle Steps
Understanding the accounting cycle is of prime importance for students, as well as those working as
accountants in different firms. In what follows, the steps of this cycle are described in detail.
Debit Vs. Credit
The world of commerce revolves around the terms debit and credit. Here, a small comparison
between the two terms have been explained. To know more, read on.
What is Managerial Accounting?
Accountancy is a pretty vast domain and has much more to it than just arithmetic calculations. In
this article, we will look at one of the fundamental branches known as managerial accounting.
How to Prepare a Cost Sheet

7. There may be many questions in the minds of many businessmen who have their own factories,
prominent among them being, how to prepare a cost sheet. Well, this article will tell you all about it.
Cost Accounting Vs. Financial Accounting
The two techniques, financial accounting and cost accounting, are synchronous to each other yet
targeted for different interested parties. The concept and some technical factors that differentiate
the two are provided in the...
Gross Vs. Net Profit
In the following article, some important distinguishing points between gross and net profit have
been discussed. The convention of calculating them is very common and is widely followed in the
business world.
Types of Accounting
The word 'accounting' is used in a very abstract manner; however, it encompasses many financial
methodologies. The article below contains some basic types of accounting, which will help you
understand the fundamental knowledge...
Matching Principle
The concept of matching principle in accounting helps in linking revenue earned to the associated
costs incurred. Read the following article to understand this concept in detail.
Accounting Ethics
Accounting is an integral part of our business and finance world. However there are some
accounting ethics to be kept in mind for all financial transactions made. It is quite important to
follow these paradigms to run a profitable...
Why is Accounting Important
We have all heard about accounting, but have you ever wondered why is accounting important?
Here we give you the reasons of why is accounting so important not only for a business but also in
our day-to-day lives. Read on...
Accounting Principles and Concepts
The accounting principles are rules that apply the practices of accounting and give guidelines to
deal with complex transactions. These principles are then divided into different concepts and
conventions. Read the Buzzle article to...
What is a Multi-Step Income Statement?
If you are planning to invest in the stock market, then you need to understand the basic financial
terminologies, such as multi-step and single-step income statements, balance sheet, statement of
cash flow, etc. This will help you...
What is Cost Benefit Analysis?

8. Cost benefit analysis helps us to make business decisions regarding different projects. As the name
suggests, it also helps us to identify the amount of capital to be spent and the benefits to be made
from a particular project.
Importance of Accounting
The importance of accounting and its scope has increased, as accountancy has not just remained a
skill of keeping records. Deep analysis, compliance, rectification, and lawfulness have become some
new integrals of accounting.
Benefits of Accounting Outsourcing
One of the most apparent benefits of accounting outsourcing is that operating costs of the company
gets reduced substantially. This article focuses on the advantages that this kind of outsourcing has...
Accounts Receivable Aging Report
In the world of business, an accounts receivable aging report is a very important statement that is
used to record data related to the debtors of a business. Here, we have provided a sample aging
report that will help you draft one...
Horizontal Analysis
Horizontal analysis is one of the foremost techniques in financial management and analysis. It is
very useful in calculating the growth of an item over a timeline that the analyst chooses.
Vertical Analysis
Vertical analysis is an integral part while carrying out the overall financial analysis of any firm. Here
is more about how to do one.
Purchase Order Sample
Want to know how to draft a purchase order? Learn how to buy an order sample for yourself, with
the help of this article.
Billing Statement Template
Notifying a customer about his balance and requests payment is the aim behind sending a billing
statement. Read the following article that provides some useful information and a template for the
same.
Income Statement Format
How to prepare an income statement format which is easy to understand and update? Here's an
article which will teach you the correct income statement format.
What are Tangible Fixed Assets?
Tangible fixed assets is a term that is commonly used by people studying finance, economics and
accountancy. Read ahead to know more...

9. Income Statement Template
What is the best way of making an easy-to understand and easy-to-use income statement? Since it is
a formal affair, you can pick out an example of your choice and go along with it.
Cost Control Methods
Business managers throughout the world fight a never-ending battle against rising costs. Cost
control methods are constantly being derived, developed, deployed, and discarded, in order to
reduce the cost of all operations.
Equity Method of Accounting
If you wish to learn about the equity method of accounting for investments in common stock, you
have come to the right place. This article will give you all the details on the definition, equity
accounting for joint ventures, and...
Bachelor's Degree in Accounting
Bachelor's degree in accounting is a precondition to work as an accountant in the finance sector.
Every organization whether a multinational company, or a small organization, or even a grocery
shop, need to maintain its accounts.
Comptroller Job Description
This article speaks about the comptroller job description, a career which is ' high in demand'
because of the decent salary range and excellent career outlook.
Glossary of Accounting Terms and Definitions
Bookkeeping and accountancy deal with maintaining record of all the transactions that a
business/individual makes. The Buzzle article below provides a glossary of accounting terms and
definitions that are most commonly-used.
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