Top 10 Accounting Software | Cloud and Desktop
Whether you operate a small business or a large corporation, the proper accounting software can simplify bookkeeping, calculate taxes automatically, and offer real-time financial data. With technology advances, companies today have the luxury of choosing between cloud-based and desktop accounting applications, both of which provide advantages in terms of accessibility, security, and functionality. Here we […]
ECO-14 Accountancy II – Solved IGNOU Assignment
Assignment Code: ECO-14/TMA/2021-22 What are the different types of branches? Explain various methods of keeping branch accounts in the books of the Head Office. From an accounting standpoint, branches may be categorised as follows: Domestic Branches The branches opened in various regions of the country where the parent enterprise is registered are known as inland […]
What is an Income Statement? Components and Elements
An income statement is a financial statement that shows a company’s revenues and expenses for a specific period of time. The Income Statement analyses the success of a company’s activities; it provides investors and creditors with the information they need to determine a business’s profitability and creditworthiness. When total sales surpass total expenses, a business […]
What is the Statement of Retained Earnings?
Statement of Retained Earnings The Statement of Retained Earnings reconciles the Retained Earnings account from the beginning to the finish of the fiscal year. Retained earnings represent the amount of profit a business reinvests in itself (i.e., the profit that is not used to pay back debt or distributed to shareholders as a dividend). It […]
Some Basic Accounting Questions You Should Be Aware of
General Accounting Concepts If you are an accounting student, these questions must be helpful in ensuring that you know basic accounting concepts. 1. In business terminology, what does the term assets mean? Assets are resources. They are things that a business can put to good use. Cash, commodities, and even entire buildings are some examples. […]
What are Contingent Assets and Contingent Liabilities?
Contingent Assets Contingent assets are those in which the likelihood of economic profit depends completely on future occurrences that cannot be controlled by the company. These assets are not included in the balance sheet due to the unpredictability of future events. However, they are presented in the financial statement notes of the company. Typically, these […]
What is the Current Ratio and Current Ratio Formula?
What is the Current Ratio? The current ratio is a measure of the short-term financial liquidity of a business. It is the ratio of current assets to current liabilities. It is necessary to understand current assets and current liabilities’ meanings to find out the current ratio of a business entity. Current Assets Current assets are […]
What is Change in the Profit Sharing Ratio in Partnership Accounts?
A change in the profit-sharing ratio in partnership accounts refers to the alteration in the distribution of profits among the partners. This can occur for several reasons, such as: Any change in the profit-sharing ratio must be agreed upon by all of the partners and documented in a written agreement. Here is an example of […]
Straight Line Method of Depreciation – Benefits and Limitations
Under Straight Line Depreciation, a fixed proportion of the original cost of the asset (less residual value) is written off each year so that the asset account may be reduced to its residual value at the end of its estimated economic life. This method is often used for assets such as machinery and equipment, buildings, […]
Differences Between Accounting Concepts and Conventions
Although to a layman, both accounting concepts and accounting conventions may sound similar, there are some fundamental differences between them. There are a few different schools of thought when it comes to keeping track of your finances. Some people prefer to follow accounting concepts, while others prefer conventions. What’s the difference between the two? Basically, […]