What is Accounting Equation ? Accounting equation is Assets = Liabilities+owner equity The resources controlled by a business are referred to as its assets. For a new business, those assets originate from two possible sources: Investors who buy ownership in the business Creditors who extend loans to the business Those who contribute assets to a business […]
The Nine Steps of the Accounting Cycle
Accounting Cycle Accounting Cycle is the collective process of recording and processing the accounting events of a company. The series of steps begin when a transaction occurs and end with its inclusion in the financial statements. When an Accounting Cycle transaction occurs it is recorded in various books and elements. the order of recording these […]
60+ Basic Accounting Terms Dictionary
What are the Basic Accounting Terms and its meaning: Basic Accounting Terms are very important for Accounting’s beginner to understand it. before starts learning to account one must read and learn all the terms to understand accounting well. Basic Accounting terminologies include all those important terms which are frequently used while studying financial accounting. These terms […]
Double Entry system vs Single Entry system
Double Entry vs Single Entry Double Entry system: Double entry system can be define as the system under which the double effect of every transaction is recorded,it means that all cash and credit transaction of the business are recorded indicating the two-fold aspect of each such transaction, for e.g when merchandise is sold for cash, […]
Basic Functions of Accounting
Basic Functions of Accounting: Functions of Accounting involves the creation of financial records of business transactions, flows of finance, the process of creating wealth in an organization, and the financial position of a business at a particular moment in time. The progress & reputation of any business big or […]