Accrual Accounting

𝐈𝐬 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞 𝐚𝐧 𝐀𝐬𝐬𝐞𝐭 𝐎𝐫 𝐀 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲?

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.

𝗔𝗰𝗰𝗿𝘂𝗲𝗱 𝗥𝗲𝘃𝗲𝗻𝘂𝗲: is it an actual revenue?

When a company provides its services or delivers its goods before the payment is received is called accrued revenue.

Unearned revenue: When it become earned?

𝐔𝐧𝐞𝐚𝐫𝐧𝐞𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞: 𝐖𝐡𝐞𝐧 𝐈𝐭 𝐁𝐞𝐜𝐨𝐦𝐞 𝐄𝐚𝐫𝐧𝐞𝐝? The questions like what is unearned revenue? How to calculate it and recognize it? When is …

How to prepare Control Account

𝐇𝐨𝐰 𝐭𝐨 𝐏𝐫𝐞𝐩𝐚𝐫𝐞 𝐂𝐨𝐧𝐭𝐫𝐨𝐥 𝐀𝐜𝐜𝐨𝐮𝐧𝐭? 𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐚𝐧𝐝 𝐅𝐨𝐫𝐦𝐚𝐭 How does the control account work? And which accounts does it adjust or control …

𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐑𝐞𝐜𝐨𝐠𝐧𝐢𝐭𝐢𝐨𝐧 𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐥𝐞
𝐃𝐞𝐟𝐞𝐫𝐫𝐞𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞: 𝐓𝐫𝐞𝐚𝐭𝐞𝐝 𝐀𝐬 𝐀 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐎𝐫 𝐑𝐞𝐯𝐞𝐧𝐮𝐞?

𝐃𝐞𝐟𝐞𝐫𝐫𝐞𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞: 𝐓𝐫𝐞𝐚𝐭𝐞𝐝 𝐀𝐬 𝐀 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐎𝐫 𝐑𝐞𝐯𝐞𝐧𝐮𝐞? Have you ever got payment for something before delivering services? Or have an online …

Contra Asset And Contra Revenue

𝐂𝐨𝐧𝐭𝐫𝐚 𝐀𝐬𝐬𝐞𝐭 𝐕𝐬 𝐂𝐨𝐧𝐭𝐫𝐚 𝐑𝐞𝐯𝐞𝐧𝐮𝐞- 𝐇𝐨𝐰 𝐃𝐨 𝐓𝐡𝐞𝐲 𝐃𝐢𝐟𝐟𝐞𝐫? Contra Asset vs Contra Revenue…. If you are wondering what is the difference …

𝐌𝐨𝐝𝐢𝐟𝐢𝐞𝐝 𝐀𝐜𝐜𝐫𝐮𝐚𝐥 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠
𝐖𝐡𝐚𝐭 𝐈𝐬 𝐀𝐬𝐬𝐞𝐭 𝐈𝐦𝐩𝐚𝐢𝐫𝐦𝐞𝐧𝐭 𝐀𝐧𝐝 𝐇𝐨𝐰 𝐓𝐨 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞 𝐈𝐭

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.

Contra Account

A contra account reduces the balance of its associated account and also recognizes the reason for reducing it.