Category Archives: Accounting

Income Statement (Statement of Comprehensive Income)

income statement

Income Statement (Statement of Comprehensive Income)   As you have already learned about different financial statements, having some prior knowledge of income statement will help you greatly in going some extra miles in getting on with income statement. This is the statement that provides the profit or, loss of that accounting period. It is a […]

Financial Statements Definition Explained

Financial statements explanation, financial statements definition, financial statements analysis, financial statements accounting, definition of financial statements, Income Statement definition, Owner’s Equity Statement definition, Cash flow statement definition, Balance sheet definition

Financial Statements Definition Explained   For a certain time period every entity has to take into account their transactions and calculate their profit or loss. The target is not only to find out the result of their business activity but also to find out their financial position. That’s where financial statements come into play. All of […]

Ratio Analysis Formulas and Examples

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Ratio Analysis Formulas Financial accounting covers a large portion that deals with ratio analysis and without compact ratio analysis examples it is tough to understand what to do or, really how to do. In this section it will direct the readers about the usage of ratios and their formulas. Here the approach is based purely […]

Financial Statement Ratio Analysis

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Financial Statement Ratio Analysis   To fit the need of the analyst different ratios are calculated from the financial statements. They are not limited to some sorts which were once calculated just for the purpose of company management. Now, in the modern age of technology, it is a complete matter that everyone has free flow […]

Travel Expenditure Controlling

Travel Expenditure Controlling   As businesses now-a-days have expanded beyond the boundaries of one individual state it is highly normal that there will be expenses related to travelling and controlling travel expenditure is an onus on businesses of modern days as cutting the expense down is the “In” thing right now. There are several ways […]

Depreciation methods, Depreciation expense and examples

What is depreciation? Depreciation methods, Depreciation expense and with lots of examples explained. Also explanations about how depreciation methods work

Depreciation methods and definition in accounting: Everything explained      Today we shall nosedive into the accounting topic depreciation in full and we will illustrate it with complete examples. What is depreciation? The process of reduction in the value of the asset over time is named depreciation. It is done to keep similarities to the real world […]

Accounting questions and Quiz

A quiz test fro accounting. 20 questions to test your basic accounting knowledge | A quick Accounting questions and Quiz page with good trivia questions.

Accounting questions and Quiz (Find answers at the bottom of the page) Total- 20 Time- 25 mins.   1. What is the full disclosure concept’s primary concern? ………………………………………………………………………………………………………………… 2. The standard accounting period will be: a. 1 year b. 1 month c. 1 week d. 1 day 3. Completeness needs support of accounting documents. a. […]

Accounting Concepts Definitions Part : 15 ( The realization concept)

The realization concept definition in accounting

Accounting Concepts Definitions Part : 15 The realization concept Accounting principles demand realization of the expense or, revenue which is related to the current year. It demands the same for the expenses or, revenues which are related to a specific category (i.e.- capital expenditure or, revenue expenditure). The realization concept states: “A revenue or, expenditure […]

Accounting Concepts Definitions Part : 11 ( understandability in accounting )

Accounting Concepts Definitions Part : 11 Understandability in accounting The accounting method of recording and disclosing is better seasoned when they are understood and complete. Here, understanding doesn’t mean the understanding by the higher ups inside the entity but by those who are outside. Because, insiders can get the data modified to their liking by […]

Accounting Concepts Definitions Part : 10 (The comparability concept)

Accounting Concepts Definitions Part : 10 The comparability concept Accounting information is not all about just design, timeliness and organization. Rather this information needs a comprehensive quality which makes such data unique and that is comparability. If data can’t be compared then that can’t pass as good accounting data. Why? Because, accounting data is supposed […]

Accounting Concepts Definitions Part : 9 (completeness concept )

Accounting Concepts Definitions Part : 9 Completeness concept As accounting is not only a process but also the responsible option to supply information, it is important for accounting to use its wing perfectly and for that completeness is the utmost necessity. It is not a common thing which the word may suggest. Rather this concept accompanies […]