Accounting Definition with its Objectives
Accounting is the action or procedure of maintenance financial accounts. It is a procedure of identifying the proceedings of financial nature, recording them in the…
Accounting
Definition: Fixed Assets, Short Term Liabilities, Revenue and Capital
Fixed assets- Fixed assets are financial capital owned by a business, which cannot be straightforwardly liquidated (converted into cash). These are held for long-term and…
Distinguish between Debtors and Creditors
Distinguish between debtors and creditors Debtors: A debtor is a person or enterprise that owes money to another party. Debtors are the party who owes…
What are Current Liabilities?
In the liabilities and owners’ equity section of the balance sheet, the first grouping is current liabilities. Current liabilities are obligations that the company is…
What is Current Assets?
Current assets are assets that a company expects to convert to cash or use up within one year or its operating cycle, whichever is longer.…
What is a Worksheet?
A worksheet is a multiple-column form used in the adjustment process and in preparing financial statements. As its name suggests, the worksheet is a working…
Importance of Adjusting Entries
Adjusting entries are required for the following reasons: Some events are not journalized on a daily basis. For example, the earning of salary by the…
Why adjusting entries are needed?
Basically the adjusting entries ensure that revenues are recorded in the period in which they are earned and that expenses are recognized in the period…
What is Fiscal Year?
Both small and large companies prepare financial statements periodically in order to assess their financial condition and results of operations. Accounting time periods are generally…
Locating and Protecting Errors of Trial Balance
Locating and Protecting Errors of Trial Balance Errors in trial balance generally result from mathematical mistakes, incorrect posting, or simply transcribing data incorrectly. To locate,…
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