A contra account reduces the balance of its associated account and also recognizes the reason for reducing it.
A suspense account is used for an unidentified transaction. As soon as that it becomes identified, record them in their respective accounts.
Is Petty Cash An Expense Account or Asset Account? Petty Cash is not an expense account, it is an asset account.
Free Cash flow & Cash flow. FCF is used for the valuation of an enterprise while CF is used to calculate an organization’s net cash flow
Cash Book Vs Cash Account: Cash book is a separate book, while cash account is an account within ledger to record cash transaction.
𝐒𝐡𝐨𝐮𝐥𝐝 𝐈 𝐮𝐬𝐞 𝐜𝐚𝐬𝐡-𝐛𝐚𝐬𝐢𝐬 𝐨𝐫 𝐚𝐜𝐜𝐫𝐮𝐚𝐥 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠? Facebook Linkedin Pinterest Twitter Cash basis vs accrual basis accounting? Ahh! Confusing- what are they? Why …
Accrual accounting is an accounting method that records revenues and expenses when they incur- same accounting period.
Cash Accounting method only considers two kinds of transactions- cash inflows & outflows. It doesn't recognize any payables, and receivables.
Cash Flow Statement Template
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