The document discusses the differences between accrual and cash basis accounting. Under the accrual method, revenues are recorded when earned and expenses are recorded when incurred, rather than when cash is received or paid out. This provides a more accurate picture of a company's financial activities. The document uses examples of recording sales and inventory purchases to illustrate the journal entries under accrual accounting versus cash accounting. While accrual basis is required for GAAP financial statements, cash basis can be used for tax reporting purposes if the accrual accounts are adjusted at year-end.
Equity is the difference between assets and liabilities as shown on a balance sheet. In other words, equity represents the portion of assets that are fully owned by the owners (stockholders, partners, or proprietor) of a business.
Equity is the difference between assets and liabilities as shown on a balance sheet. In other words, equity represents the portion of assets that are fully owned by the owners (stockholders, partners, or proprietor) of a business.
A journal is a record of transactions that shows the accounts and amounts of both the debit side and credit side of the entry. A General Journal is the primary journal or place to record transactions that do not fit into any other journal
The bank reconciliation is a process by which to compare an entity's book cash balance with the bank's cash balance as of a given period so as to note any discrepancies.
Intangible assets are defined as those non-monetary assets of a company that cannot be seen, touched or physically measured, whereas with a tangible asset you can “stub your toe” on it
Goodwill is the difference between the value of a business enterprise as a whole and the sum of the current fair values of its identifiable tangible and intangible net assets. Net assets are the assets that are left after subtracting the company’s liabilities. Goodwill is only recorded when its amount is substantiated by an arm’s-length transaction. Goodwill cannot be sold or acquired separately but has
to be included in a purchase with the net assets of a business enterprise
This is the method by which revenues are recorded when earned, and expenses are recorded when they are incurred, as opposed to a cash-basis method of accounting that measures revenue when cash is received and expenses when they are paid
Double entry debit credit matrix (modern and traditional approach )Santhanam Srikanthan
For easy understanding of double entry concept- Debit- Credit , the language of accounting - For Non finance people in business and pursueing business management education
Any business whether small or big needs bookkeeping to keep track of the progress of the business. In this document, you will learn what bookkeeping is all about. https://make-money-with-sam.com/bookkeeping-101-for-small-businesses/
A journal is a record of transactions that shows the accounts and amounts of both the debit side and credit side of the entry. A General Journal is the primary journal or place to record transactions that do not fit into any other journal
The bank reconciliation is a process by which to compare an entity's book cash balance with the bank's cash balance as of a given period so as to note any discrepancies.
Intangible assets are defined as those non-monetary assets of a company that cannot be seen, touched or physically measured, whereas with a tangible asset you can “stub your toe” on it
Goodwill is the difference between the value of a business enterprise as a whole and the sum of the current fair values of its identifiable tangible and intangible net assets. Net assets are the assets that are left after subtracting the company’s liabilities. Goodwill is only recorded when its amount is substantiated by an arm’s-length transaction. Goodwill cannot be sold or acquired separately but has
to be included in a purchase with the net assets of a business enterprise
This is the method by which revenues are recorded when earned, and expenses are recorded when they are incurred, as opposed to a cash-basis method of accounting that measures revenue when cash is received and expenses when they are paid
Double entry debit credit matrix (modern and traditional approach )Santhanam Srikanthan
For easy understanding of double entry concept- Debit- Credit , the language of accounting - For Non finance people in business and pursueing business management education
Any business whether small or big needs bookkeeping to keep track of the progress of the business. In this document, you will learn what bookkeeping is all about. https://make-money-with-sam.com/bookkeeping-101-for-small-businesses/
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Bad debt, in an accounting environment, represents revenue from sales that were purchased on credit and/or notes receivable that have proven uncollectible