Accounting Theory

Bank reconciliation is utilized to compare the records to those of your bank, to see if you’ll find any differences between the two of these…

A voucher is an inside document describing and authorizing the payment of a liability to a trader. It is most frequently used in a manual…

Costs can be classified as direct costs or indirect costs. The intent behind this classification is to assign costs in order to cost objects. Expense…

As the process of business activities alterations, some costs change and some do not. The response of a cost to a big difference in business…

Costs might be classified as product or service costs and period of time costs. This classification is normally used for monetary accounting purposes. A shorter…

The accrual basis of accounting can be used to record income and expenses from the period in they will are earned, inspite of the timing…

A balance sheet consists of the ending balances in the asset, liability, and shareholders equity accounts by the balance page date. This financial statement supplies…

A margin means the difference between product sales and costs. There are a number of margins that could be calculated from the information located in…

When an accounting deal occurs, it is first recorded from the accounting system in a journal. There might be several journals, which can be either…

The modified cash basis of accounting uses aspects of both the income basis and accrual groundwork of accounting. Under the income or cash basis, a…