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Accounting Cycle Accounting is a systematic process that starts with identifying & measuring transactions and ends with summarizing and reporting. As all the steps maintain a chain relationship with each other, the process is called the accounting cycle. The basic steps of the accounting cycle can easily be understood through this diagram: Identifying and Recording … Read more
Accounting Equation The two fundamental elements of business are what it owns and what it owes. Assets represent the resources of a business that a business owns. For example “Patrick & Sons” company has total assets of approximately $ 34.6 billion. And liabilities and owner’s equities are the rights and claims against the resources … Read more
Meaning & Format of Accounting Journal Journal is required as a way of recording process or used as a book entering data. Journal is usually used by business organization or accountants. Journal is referred as the way of recording process of accounting transactions or used as a book for entering accounting data by applying the debit … Read more
Adjusting Entries for Deferrals From previous article you learned about Definition, Types & Example of Adjusting Entries. Today’s topic is on Adjusting Entries for Deferrals. Prepaid expenses and unearned revenues are the example of deferrals. Generally prepaid means which is paid before and prepaid expense means the expense which is paid in advanced. Unearned revenue is received of cash in advance … Read more
Adjusting Entries: Definition,Types & Example Today’s accounting lesson will help you to learn Definition, Types & Example of Adjusting Entries. Also at the bottom of this tutorial, you will find a Free Accounting Training Video on Adjusting Entries. Adjusting Entries can be defined as journal entries, prepared at the end of each accounting period to identify and spread … Read more
Bank Reconciliation Procedure The bank and the depositor generally maintain separate records of the depositor’s checking account. Bank reconciliation is an analysis of the items and amounts which resulted in the cash balance reported in the bank statement to differ from the balance of the cash account in the ledger. The adjusted cash balance determined in the bank … Read more
Benefit & Limitation of Income Statement The income statement is an integral part of financial statement which is very beneficiary and helpful for determining for net income or ne loss. Income statement also helps the user of accounting specially the external users such as investors and creditors. The users of income statement basically focus or use the … Read more
Learn Break Even Analysis (Ultimate Guide) Break even analysis is a management imperative analysis. The analysis focuses in interplay of pricing, variable costs, volume and product mix. Hence sales and units helps in making decision on which products to offer, how much products will be priced and how organizations cost will be managed. It’s effective … Read more
Cash Disbursements Journal: Definition with Sample Following tutorial on cash Disbursements journal will help you to learn: What is Cash Disbursements Journal What is Cash Payment Journal Why cash disbursements or cash payment journal is used Sample of Cash Disbursements Journal Format or Template of Cash Disbursements Journal The payments of any business which are made in … Read more
Cash Receipts Journal: Definition with Sample Like Cash Disbursement Journal, another important special journal is the cash receipts journal. Cash receipts journal can be defined as a special journal which deals with the all cash received that are generated from sales, interest, rent, or many other sources. The cash receipts journal has a column entitled by Cash Dr. The cash receipts … Read more
