The accounting cycle comprises of eight collaborative steps. They are:Identifying and analyzing the transactions Recoding these transactions into the general journal Posting to the General Ledger Preparing a trial balance Making adjusting entries Preparing an Adjusted Trial Balance Preparing financial statements Closing accounts
Accrual Accounting
When a sole proprietor or the business owner withdraws assets such as goods or cash from business for his personal use, accounting termed it as ownerโs drawing.
Reversing entries in accounting records at the beginning of an accounting period to cancel out or reverse the effects of adjusting entries of preceding accounting period.
A business transaction (selling or buying a thing) that does not involve cash is called non-cash transaction.
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.
When a company provides its services or delivers its goods before the payment is received is called accrued revenue.
๐๐ง๐๐๐ซ๐ง๐๐ ๐๐๐ฏ๐๐ง๐ฎ๐: ๐๐ก๐๐ง ๐๐ญ ๐๐๐๐จ๐ฆ๐ ๐๐๐ซ๐ง๐๐? The questions like what is unearned revenue? How to calculate it and recognize it? When is โฆ
How To Prepare A Control Account? Example and Format What is control account and how does the control account work? And which โฆ
Under the revenue recognition principle, revenue is recognized when itโs earned, not when cash is received.
๐๐๐๐๐ซ๐ซ๐๐ ๐๐๐ฏ๐๐ง๐ฎ๐: ๐๐ซ๐๐๐ญ๐๐ ๐๐ฌ ๐ ๐๐ข๐๐๐ข๐ฅ๐ข๐ญ๐ฒ ๐๐ซ ๐๐๐ฏ๐๐ง๐ฎ๐? Have you ever got payment for something before delivering services? Or have an online โฆ