Are you a student trying to understand how to calculate depreciation expense for your accounting exams? It’s a core part […]
How to Calculate Depreciation Expense: A Step-by-Step Guide with Examples Read More ยป
If youโre looking to master journal entry accounting, youโve come to the right place. Whether youโre a beginner in accounting
Mastering Journal Entry in Accounting: Types, Templates, and Common Mistakes Read More ยป
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
The 8 Steps in the Accounting Cycle | A Step-by-Step Example Guide Read More ยป
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.
Mastering Reversing Entries: Practical Examples and Effective Solutions Read More ยป
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.
The questions like what is unearned revenue? How to calculate it and recognize it? When is it transferred from the
What is control account and how does the control account work? And which accounts does it adjust or control particularly?
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Under the revenue recognition principle, revenue is recognized when itโs earned, not when cash is received.
Have you ever got payment for something before delivering services? Or have an online shopping experience? If yes, then you
