Accounting

The factors relevant in determining the annual depreciation for a depreciating asset are the initially recorded amount (cost), estimated salvage value, estimated useful life, and…

The four categories of plant assets are buildings, equipment, land and improvements. The things we want to discuss are which assets fall into each category and…

The following basic assumptions underlie the financial accounting structure: Economic entity assumption The economic entity assumption means that economic activity can be identified with a…

Diminishing Balance Method or Reducing Balance Method for Calculating Depreciation Depreciation is a decrease in the price of an asset with the course of time,…

Straight Line Method or Fixed Installment Method for Calculating Depreciation Depreciation is a decrease in the price of an asset with the course of time,…

Depreciation is a decrease in the price of an asset with the course of time, due in particular to wear and tear. All assets whose…

A bank reconciliation is a process performed by a company to ensure that the company’s records (check register, general ledger account, balance sheet, etc.) are…

Terms used for Depreciation: Depreciation is a decrease in the price of an asset with the course of time, due in particular to wear and…

17 principles of effective internal control are as follows: Demonstrate commitment to integrity and ethical values. Ensure that board exercises oversight responsibility. Establish structures, reporting…

The main application of a computer in the accounting system are listed below: Speed — data entry onto the computer with its formatted screens and…