Basics
What is Revenue, Expense and Drawing
In Lesson 2 we defined the terms Asset and Liability. In this lesson we will complete the last…
August 16, 2021 · Boomi NathanBasics
Basics
The Accounting Equation
The accounting equation! Probably sounds intimidating. Don’t worry, it really is as simple as ABC. Here’s what it…
August 16, 2021 · Boomi NathanBasics
What are Assets and Liabilities in Accounting
The words “asset” and “liability” are two very common words in accounting. Some people simply say an asset…
August 16, 2021 · Boomi NathanBasics
An Overview of Contracts and Why They are Important to Business and Society
Contracts govern all transactions whether they are between firms or between firms and private individuals. Indeed, in most…
August 16, 2021 · Boomi NathanBasics
Need for a Theory of Accounting to Improve the Accounting Profession
Creative Accounting and the Need for a Theory of Accounting The rise of “creative accounting” practices, an euphemism for hiding…
August 16, 2021 · Boomi NathanBasics
Need for a Uniform and Common Theory of Accounting
The frequent attempts by experts and professionals on having a “theory” that would guide accountants all over the…
August 16, 2021 · Boomi NathanBasics
Working Capital Cycle
Generation and disbursement of cash is carried out in the manner depicted by the following diagram:
August 16, 2021 · Boomi NathanBasics
Gross Working Capital and Net Working Capital
Gross working capital means the investment in current assets, whereas the Net working capital means the difference of…
August 16, 2021 · Boomi NathanBasics
Management Accounting – Working Capital
Working capital is defined by experts as follows – “Working capital is the amount of funds necessary to…
August 16, 2021 · Boomi NathanBasics
Management Accounting – Useful Ratios
Short–term Financial Position or Test of Liquidity (a) Current Ratios = Current AssetsCurrent Liabilities (b) Quick or Acid…
August 16, 2021 · Boomi Nathan