Accounting Basics 3 min read
Cost Accounting – Advantages
The advantages of cost accounting are: Disclosure of profitable and unprofitable activities Since cost accounting minutely calculates the cost, selling…
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Concepts of Cost Accounting
Following are the main concepts of cost accounting: Cost There is a cost involved to purchase or produce anything. Costs…
Accounting Basics 1 min read
Cost Accounting – Introduction
Cost accounting is the application of accounting and costing principles, methods, and techniques in the ascertainment of costs and the…
Accounting Basics 1 min read
Business Entity Concept
According to this concept, the business and the owner of the business are two different entities. In other words, I…
Accounting Basics 2 min read
Method of Depreciation
Depreciation can be calculated using any of the following methods, however the most popular methods remain (a) Straight Line Method…
Accounting Basics 1 min read
Accounting Entries Related to Assets and Depreciation
Let us see the accounting entries related to assets and depreciation: S.No. Particulars Journal Entries 1 Purchase of Fixed Assets…
Accounting Basics 1 min read
Why Do We Need to Account for Depreciation?
Here is why we need to provide depreciation: ● To ascertain the true profit during a year, it is desirable to…
Accounting Basics 1 min read
Financial Accounting – Depreciation
Depreciation reduces the value of assets on a residual basis. It also reduces the profits of the current year. Depreciation…
Accounting Basics 3 min read
Cash vs. Accrual Basis of Accounting
Cash Basis of Accounting Cash Basis of Accounting uses receipts and payments of cash to record incomes and expenses. Therefore, under…
Accounting Basics 1 min read
Current Liabilities
Like current assets, current liabilities are immediate liabilities of the firm that are to be paid within one year from…
Accounting Basics 1 min read
Current Assets
Assets that are convertible into cash within the next accounting year are called current assets. Cash in hand, cash in…
Accounting Basics 1 min read
Owner’s Equity
The equation of equity is as follows: Owner Equity = Assets – liability The owner or the sole proprietor of…