Month: February 2021

Accounting has been clearly defined as “the measurement and communication process of financial and economic data”. The science of accounting is still in the evolutionary process. The traditional accounting, later styled as single entry from of book-keeping, was in vogue Read More …

In the modern business world, the nature and functioning of business organizations have become very complicated. They have to serve the needs of variety of parties who are interested in the functioning of the business. These parties constitute the owners, Read More …

The transactions of a business enterprise for the accounting period are first recorded in the books of original entry, then posted therefrom into the ledger and lastly tested as to their arithmetical accuracy with the help of trial balance. After Read More …

MEANING OF DEPRECIATION Generally, the term depreciation is used to denote decrease in value but in accounting, this term is used to denote decrease in the book value of fixed asset. Depreciation is the permanent and continuous decrease in the Read More …

The literary meaning of the word inventory is stock of goods. To the finance manager, inventory connotes the value of raw materials, consumable, spares, work-in-progress, finished goods and scrap in which a company’s funds have been invested. It constitutes the Read More …

Any economic transaction or event of a business, which can be expressed in monetary terms, should be recorded. Traditionally, accounting is a method of collecting, recording, classifying, summarizing, presenting and interpreting financial data aspect of an economic activity. The series Read More …

A Trial Balance is a two-column schedule listing the titles and balances of all the accounts in the order in which they appear in the ledger. The debit balances are listed in the left-hand column and the credit balances in Read More …

Any economic transaction or event of a business which can be expressed in monetary terms should be recorded. Traditionally, accounting is a method of collecting, recording, classifying, summarizing, presenting and interpreting financial data of an economic activity. The series of Read More …

Accounting is often called the language of business because the purpose of accounting is to communicate or report the results of business operations and its various aspects to various users of accounting information. In fact, today, accounting statements or reports Read More …

Accounting has rightly been termed as the language of the business. The basic function of a language is to serve as a means of communication Accounting also serves this function. It communicates the results of business operations to various parties Read More …