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.
AD's Blog
Online Accounting Learning Platform – The super Simple and Smartest Way!
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 organizationโs 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.
๐๐ฒ๐ฉ๐๐ฌ ๐จ๐ ๐๐จ๐ซ๐ค๐ข๐ง๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ- ๐๐ซ๐จ๐ฌ๐ฌ ๐ฏ๐ฌ ๐๐๐ญ ๐๐, ๐๐๐ซ๐ฆ๐๐ง๐๐ง๐ญ ๐ฏ๐ฌ ๐๐๐ฆ๐ฉ๐จ๐ซ๐๐ซ๐ฒ ๐๐ Looking puzzled! Why there are too many different types of โฆ
๐๐ก๐จ๐ฎ๐ฅ๐ ๐ ๐ฎ๐ฌ๐ ๐๐๐ฌ๐ก-๐๐๐ฌ๐ข๐ฌ ๐จ๐ซ ๐๐๐๐ซ๐ฎ๐๐ฅ ๐๐๐๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ ? Cash basis vs accrual basis accounting?ย Ahh! Confusing- what are they? Why and how Cash basis โฆ
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.
Three methods of preparing Cash Budget: 1.Receipt and payment method 2.Adjusted profit & loss method/Cash Flow Method 3.Balance Sheet Method.
Four easy steps to prepare cash budget: Define the period, Decide the desired cash position, estimate cash inflows outflows.
Calculate cash conversion cycle in 3Steps. Step#1 Calculate Avg. Inventory, A/R and A/P. Step#2 Calculate DIO, DSO, DPO. Step#3 Calculate CCC.
Free Cash Flow (FCF) indicates that a company is financially sound, and it has the ability to grow and pay its debts and dividends.
The "impact" relates to how the cash flow has changed when there is positive and negative fluctuation in working capital.
Cash Flow Statement Template
Get Free Access to AD's easy to use excel template of cash flow statement
