Accounting Principle

Definition Journal is an accounting record in which transactions are initially recorded in chronological order. Journals are of various types, such as General, Adjusting, Closing,…

Rules of Debit and Credit Debit means left side of an account, and credit means right side of an account. But rules of debit and…

Accounting equation is framework that states that the economic resources of a specific entity are equal to the claims on those resources. Format:              A =…

The business transaction is the event that changes financial position of the business. A business transaction has the following features: It is measurable in terms…

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…