Accounting

Chart of accounts is the list of accounts and the account numbers that identify their location in the ledger. Chart of account is made by…

The normal balance of an account is on the side where an increase in the account is recorded. Various Normal Balances Normal balances are of six…

Difference between Management Accounting and Financial Accounting Although financial accounting and management accounting are closely interrelated but they have some certain points of difference and…

The four financial statements Companies prepare four financial statements from the summarized accounting data: Income Statement: An income statement presents the revenues and expenses and…

Functions of Accounting Accounting has various functions in various fields such as in the society, everyday life, the organization, an individual, creating values and accountability,…

Definition The word ‘Accounting’ comes from the Latin word ‘Calculi’ which means to count. But academically, accounting is an information system that identifies, records, and communicates…

History of Accounting The history of accounting is very ancient like thousands of years. But the history of accounting profession is new. Modern civilization is…

There are seven branches of accounting:- a) Financial Accounting: This is called original accounting, which is mainly confined to the preparation of financial statement for…

Positive leverage arises if a business or individual borrows funds and invests the funds at the consequences higher than the rate at which they were…

The particular plowback ratio measures how much earnings that have been retained after investor dividends have been paid out. It’s used by investors to evaluate…