What is the Accrual Concept in Financial Accounting?
The accrual concept is an accounting method used to record revenue and expenses when they occur rather than when they are paid. This means that revenues and expenses are recognised on the income statement in the period they are generated or incurred, regardless of when the cash is received or paid. This is the case […]
What Are the Differences between IFRS and GAAP?
Financial reporting standards are important to provide transparency, consistency, and comparability of financial statements among businesses. International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) are two of the most popular accounting frameworks globally. While IFRS is a worldwide standard adopted by most countries, GAAP is mainly applied in the United States. The […]
What are various types of sales variances in cost accounting
Sales variance can be defined as the difference between the standard or expected revenue and the actual revenue. It is different from cost variances because cost variances occur when costs deviate from the budgeted amounts. Investigation of what caused the variance is crucial to understand to make management decisions such as buying or making a […]
What is the Budget Period in Accounting?
A budget is a quantitative future plan that helps an organisation coordinate its actions. Large organisations all have a budget. Numerous companies produce detailed budgets for the upcoming year and budgets with less depth and a more general strategic orientation for the following years. Budget Period The budget period is the period for recording costs […]
What is the Ledger and its purpose in Bookkeeping?
A ledger, in bookkeeping and accounting, is a fundamental record, containing all the financial transactions of a business, organized by account. It essentially forms the spine of the accounting system by ingesting data from several financial documents and expressing them as a single coherent record. The ledger gives an orderly and detailed look at the […]
Jalani Distributors sold three light commercial vans
Jalani Distributors sold three light commercial vans to Jain Enterprises on January 1, 2017, on hire purchase system. The price of each van was Rs. 90,000 payment of which was to be made as follows : Jain Enterprises was charging depreciation of @20% each year on the written-down value method. After payment of the first […]
Fundamental and Technical Analysis in the Stock Market
Stock markets can be an intimidating place, filled with complexity and uncertainty. To navigate them successfully as an investor, having an in-depth knowledge of both fundamental and technical analysis is paramount in making informed decisions that benefit both you and the market. The analysis provides invaluable insights that help investors navigate it successfully. The purpose […]