Financial Accounting Concepts
Financial accounting is the process of recording, classifying, summarizing and communicating information about a business’s finances.
-
What is the accounting process?
The accounting process is a series of steps that businesses follow to record, classify, summarize, and report their financial transactions. It is a cyclica
-
What are accounting estimates in financial accounting?
We have learned how to measure a transaction that has already occurred or taken place and for which either some value /money has been paid, or some valuati
-
Closing Entries to Prepare Trading Account
Closing Entries Before preparing the Trading account, various accounts need to be closed and transferred to the trading account at the end of the accountin
-
What is the Importance of Trading Account in Final Accounts
We all know that accounting is directed toward keeping systematic records of business transactions. These records are prepared with a view to ascertaining
-
What is Triple Bottom Line Reporting (TBLR)?
Triple Bottom Line Reporting (TBLR) is a new process that focuses on reporting, assessing and improving organisational performance for sustainability. This
-
What is a Common-Size Financial Statement in Accounting?
A common-size financial statement is a financial statement where each line item is presented as a percentage of a base figure. The base figure is typically
-
Classification of Accounts in Bookkeeping
The journal is the primary record book. All entries are made chronologically; that is when they occur. Transactions in the journal are documented using sol
-
How to Prepare Profit and Loss Account?
A profit and loss account, also known as the income statement or statement of revenues and expenses, is prepared to ascertain the profit earned or los
-
What are Coverage Ratios – Meaning and Calculation
A coverage ratio is a measure of relative financial exposure to a specific contingent liability. The primary purpose is to quantify the ratio of net curren
-
What is Financial Statement Analysis?
The term ‘financial statement analysis‘ refers to determining the firm’s financial position by reviewing and analysing the balance sheet items, profi