Accounting Drive

๐ˆ๐ฌ ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ ๐‘๐ž๐œ๐ž๐ข๐ฏ๐š๐›๐ฅ๐ž ๐š๐ง ๐€๐ฌ๐ฌ๐ž๐ญ ๐Ž๐ซ ๐€ ๐‹๐ข๐š๐›๐ข๐ฅ๐ข๐ญ๐ฒ?

๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ ๐‘๐ž๐œ๐ž๐ข๐ฏ๐š๐›๐ฅ๐ž- ๐€๐ง ๐€๐ฌ๐ฌ๐ž๐ญ ๐Ž๐ซ ๐€ ๐‹๐ข๐š๐›๐ข๐ฅ๐ข๐ญ๐ฒ?

Share:

Account receivable is classified as an asset because it is the amount that the company will receive on behalf of the services that it has provided.

๐‘๐ž๐ฏ๐ž๐ง๐ฎ๐ž ๐‘๐ž๐œ๐จ๐ ๐ง๐ข๐ญ๐ข๐จ๐ง ๐๐ซ๐ข๐ง๐œ๐ข๐ฉ๐ฅ๐ž

๐‹๐ž๐š๐ซ๐ง ๐‘๐ž๐ฏ๐ž๐ง๐ฎ๐ž ๐‘๐ž๐œ๐จ๐ ๐ง๐ข๐ญ๐ข๐จ๐ง ๐๐ซ๐ข๐ง๐œ๐ข๐ฉ๐ฅ๐ž ๐ˆ๐ง ๐Ÿ’ ๐Œ๐ข๐ง๐ฎ๐ญ๐ž๐ฌ

Share:

Under the revenue recognition principle, revenue is recognized when itโ€™s earned, not when cash is received.

Modified Accrual Accounting

๐–๐ก๐ฒ ๐Œ๐จ๐๐ข๐Ÿ๐ข๐ž๐ ๐€๐œ๐œ๐ซ๐ฎ๐š๐ฅ ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ ? ๐ƒ๐ž๐ญ๐š๐ข๐ฅ๐ž๐ ๐„๐ฑ๐ฉ๐ฅ๐š๐ง๐š๐ญ๐ข๐จ๐ง.

Share:

Modified accrual accounting recognizes revenues only when measurable and available. And recognize expenses when they incur.

Asset Impairment

๐–๐ก๐š๐ญ ๐ˆ๐ฌ ๐€๐ง ๐€๐ฌ๐ฌ๐ž๐ญ ๐ˆ๐ฆ๐ฉ๐š๐ข๐ซ๐ฆ๐ž๐ง๐ญ? ๐€๐ง๐ ๐‡๐จ๐ฐ ๐“๐จ ๐‚๐š๐ฅ๐œ๐ฎ๐ฅ๐š๐ญ๐ž ๐ˆ๐ญ?

Share:

When an asset losses its value or there is a reduction in its market value, this reduction in value is referred to as Asset Impairment.