Financial Accounting Concepts
Financial accounting is the process of recording, classifying, summarizing and communicating information about a business’s finances.
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Written Down Value Method of Depreciation
Depreciation represents the systematic reduction in the value of an asset over its useful life due to wear and tear, usage, or obsolescence. It helps in pr
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Common Mistakes Students Make While Calculating Depreciation
Depreciation is one of the foundational concepts in accounting that helps allocate the cost of a tangible asset over its useful life. Despite being a routi
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Depreciation, Amortisation, and Depletion: What’s the Difference?
Every business owns assets — machines, vehicles, buildings, patents, and natural resources — that help it generate revenue. But these assets don’t last for
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What Is a Fractional CFO and Why Every Growing Business Needs One
In business world, financial expertise is no longer a luxury — it is a necessity. Yet, hiring a full-time Chief Financial Officer (CFO) is beyond the budge
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What is the Matching Concept in Accounting
Accounting as a profession is based on a structure of principles and concepts that introduce consistency and dependability into financial statements. Among
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Operating Profit vs. Gross Profit vs. Net Profit
While reviewing an income statement, you probably noticed the terms gross profit, operating profit, and net profit. But do you understand what differentiat
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Differences Between Events and Transactions
In accounting, the terms events and transactions are often used interchangeably by those unfamiliar with their technical distinctions. Yet, for accountants
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Creative Accounting and Its Effects on Financial Reporting
Creative accounting is a financial strategy that involves manipulating financial statements to present a more favourable image of a company’s financial hea
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What is Cash Book? Features and Objectives
The cash book, in its simplest form, is a chronological record of all cash transactions (receipts and payments) made by a business. It serves as a primary
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What is a Common-Size Financial Statement in Accounting?
A common-size financial statement is a type of financial statement where each line item is presented as a percentage of a base figure. The base figure is t