What are the Purpose of Trial Balance?
Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step towards the preparation of financial…
Accounting
How to Prepare a Trial Balance?
A trial balance is prepared at the end of each reporting period. This is done in order to aggregate accounting information for inclusion in the…
What are the Types of Income Statements?
The income statements reports on the revenues, expenses, and profits of an organization. There are several types of income statement formats available, which can be…
What is Straight Line Amortization?
Straight line amortization is a method for charging the cost of an intangible asset to expense at a consistent rate over time. This method is…
What is the Usefulness of Accounting for Sole Proprietorship?
The accounting for a sole proprietorship does not require a separate set of accounting records, since the owner is considered to be inseparable from the…
What are the Difference between Product Costs and Period Costs?
The key difference between product costs and period costs is that products costs are only incurred if products are acquired or produced, and period costs…
Is Depreciation a Fixed Cost or Variable Cost?
Depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset. Depreciation cannot be considered…
What are the Advantages and Disadvantages of Sole Proprietorship?
A sole proprietorship is a business that is directly owned by a single individual. It is not incorporated, so that the sole owner is entitled…
What are the Advantages and Disadvantages of Corporation?
A corporation is a legal entity, organized under state laws, whose investors purchase shares of stock as evidence of ownership in it. The advantages of…
What are the Advantages and Disadvantages of Partnership?
A partnership is a form of business organization in which owners have unlimited personal liability for the actions of the business. The owners of a partnership…
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