What is Deferred Revenue and how does it work?
Reading Time: 5 minutesAdvance payments a business receives for goods or services that will be supplied or performed in the future are referred to as deferred revenue, or unearned income.…
What Is an Advance Payment in Accounting, and how it Works?
Reading Time: 6 minutesAdvance payment is making a certain payment earlier than is usual such as paying for a particular good or service while the actual receipt will occur at…
Generally Accepted Accounting Principles(GAAP) compliance
Reading Time: 5 minutesIntroduction to GAAP GAAP are, therefore, a standardized set of rules and practice for accounting and reporting financial statements. These principles facilitate comparability, reliability, and quality of…
Revenue Recognition in accounting: methods & importance
Reading Time: 6 minutesGeneral performance of business is always centered on the generation of revenue. Regulators are fully aware of how easily businesses can manipulate standards governing what constitutes revenue,…
What is liquidity and how to measure it? Examples
Reading Time: 8 minutesIntroduction Liquidity is a phenomenon related to how easily cash could be obtained from an asset without affecting the price much. It has turned out to be…
Double Entry Accounting & it’s Impact on Business Operations
Reading Time: 4 minutesAccounting double entry is one of the basic concepts accepted in the modern systems of financial management. It also ensures that businesses retain reliability, transparency, and make…
Selling General and Administrative (SG&A) Expense, Types, Calculation, Importance
Reading Time: 4 minutesSG&A expenses include all the cost that affects the firm’s performance other than cost of goods sold it is an important part of the income statement. These…
What is the difference between accounting and finance?
Reading Time: 7 minutesAccounting and finance are buzzwords commonly heard in discussions over money management, strategic plans, and organizational success. Although accounting and finance are two related concepts, their scope,…
Cost Accounting: Overview, methods, importance, types, objectives
Reading Time: 7 minutesCost Accounting That portion of accounting is referred to as cost accounting, which involves recording, analysis, and reporting costs of running operations for a firm. The main…
Understanding Balance Sheet Elements & Indian Accounting Standards
Reading Time: 6 minutesBalance sheet It would be a balance sheet in nature that represents the major indicator of the financial status of the business, worldwide, especially in India. It…
Double-entry and accounting equation: Overview, calculating, History, Components, Importance
Reading Time: 5 minutesAccounting plays the pivotal role to the financial management because it helps them to record as well as report the financial activities. Accounting mechanical and at the…
Book Value: Meaning, Formula,Investor’s perspective
Reading Time: 5 minutesDefinition of Book Value Net or book value refers to the value of the fixed asset or value assigned to an enterprise in the balance sheet. The…
Importance of Retained Earnings, Reserves and Surplus
Reading Time: 3 minutes Introduction There are retained earnings, reserves, and surplus: these three crucial elements of the firm’s financial structure give a clue to the balance it enjoys regarding…
Understanding the types of accouting
Reading Time: 3 minutesWhat is Accouting? Accounting is the process of recording, classifying, summarizing and reporting the financial transaction pertaining to a business to the interested parties including internal and…
What is Unified POS & How does it compare to Traditional POS
Reading Time: 5 minutesThe fast-shifting retailing environment compels businesses to keep responding in addition to being adaptive for the changing needs of modern consumers has marked one of the most…
Managerial Accounting and Financial Accounting: Overview, Examples & Differences
Reading Time: 4 minutesManagerial accounting and financial accounting are two different branches of accounting that have different purposes, target audiences, and reporting procedures. Both fields provide critical financial information; however,…
Must know accounting regulations
Reading Time: 3 minutesAccountancy is adherence and compliance with major rules that ensures the integrity of financial reports. Here are the major accounting regulations: 1. Generally Accepted Accounting Principles (GAAP)…
Trial Balance & Adjusted Trial Balance Preparation
Reading Time: 4 minutesThe key tools in the accounting process that ensure all the financial records of the company can be correct and balanced are trial balance and adjusted trial…
Excel Modeling for Accountant: Key skills required
Reading Time: 4 minutesA skillset in Excel modelling is important for accountants, enabling them to analyse data, forecast trends, and provide support for business decisions. With the right Excel skills,…
Simple and Compound Interest: Definition, Formula, Benefits, Differences
Reading Time: 3 minutes Introduction The terms “simple interest ” and ” compound interest ” should not be foreign to anyone dealing with finances. Simple interest and compound interest are…
Tax Accounting
Reading Time: 3 minutesTax accounting is that area of accounting that specializes in tax-related activities of all kinds of entities. It deals with tax compliance and reporting rather than traditional…
Difference between Capital, Revenue and Expenditure
Reading Time: 4 minutesCapital expenditure are refered to as funds that are spent by an organization for acquiring or installing long-term assets to generate long term benefits. This usually occurs…
Understanding the differences between Tax accounting and managerial accounting
Reading Time: 3 minutes Introduction It is very crucial for any business to understand the difference between tax accounting and managerial accounting. The two areas, though different in terms of…
Tax Accounting and Cost Accounting: Overview and difference
Reading Time: 3 minutes Introduction Accounting is divided into several branches that have evolved to meet specific needs. For instance, there is Tax Accounting , which deals specifically with tax…
Double entry and its uses in Accounting
Reading Time: 3 minutesWhat is Double Entry? Double-entry accounting is the basis of bookkeeping where financial transactions are accurately and uniformly recorded through making a dual entry in two different…
Price-to-Book (P/B) Ratio and Its Relevance in IB
Reading Time: 4 minutesIntroduction: The price-to-book ratio is essential in understanding investment decisions because it helps one identify the potential investment opportunities and assess the firm’s financial condition within the…