𝐂𝐨𝐧𝐭𝐫𝐚 𝐀𝐬𝐬𝐞𝐭 𝐕𝐬 𝐂𝐨𝐧𝐭𝐫𝐚 𝐑𝐞𝐯𝐞𝐧𝐮𝐞- 𝐇𝐨𝐰 𝐃𝐨 𝐓𝐡𝐞𝐲 𝐃𝐢𝐟𝐟𝐞𝐫?
Contra Asset vs Contra Revenue…. If you are wondering what is the difference between a contra asset account and a […]
𝐂𝐨𝐧𝐭𝐫𝐚 𝐀𝐬𝐬𝐞𝐭 𝐕𝐬 𝐂𝐨𝐧𝐭𝐫𝐚 𝐑𝐞𝐯𝐞𝐧𝐮𝐞- 𝐇𝐨𝐰 𝐃𝐨 𝐓𝐡𝐞𝐲 𝐃𝐢𝐟𝐟𝐞𝐫? Read More »
𝐖𝐡𝐲 𝐌𝐨𝐝𝐢𝐟𝐢𝐞𝐝 𝐀𝐜𝐜𝐫𝐮𝐚𝐥 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠? 𝐃𝐞𝐭𝐚𝐢𝐥𝐞𝐝 𝐄𝐱𝐩𝐥𝐚𝐧𝐚𝐭𝐢𝐨𝐧.
Modified accrual accounting recognizes revenues only when measurable and available. And recognize expenses when they incur.
𝐖𝐡𝐲 𝐌𝐨𝐝𝐢𝐟𝐢𝐞𝐝 𝐀𝐜𝐜𝐫𝐮𝐚𝐥 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠? 𝐃𝐞𝐭𝐚𝐢𝐥𝐞𝐝 𝐄𝐱𝐩𝐥𝐚𝐧𝐚𝐭𝐢𝐨𝐧. Read More »
𝐖𝐡𝐚𝐭 𝐈𝐬 𝐀𝐧 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.
𝐖𝐡𝐚𝐭 𝐈𝐬 𝐀𝐧 𝐀𝐬𝐬𝐞𝐭 𝐈𝐦𝐩𝐚𝐢𝐫𝐦𝐞𝐧𝐭? 𝐀𝐧𝐝 𝐇𝐨𝐰 𝐓𝐨 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞 𝐈𝐭? Read More »
𝐖𝐡𝐲 𝐃𝐨 𝐖𝐞 𝐍𝐞𝐞𝐝 𝐀 𝐂𝐨𝐧𝐭𝐫𝐚 𝐀𝐜𝐜𝐨𝐮𝐧𝐭?
A contra account reduces the balance of its associated account and also recognizes the reason for reducing it.
𝐖𝐡𝐞𝐧 𝐓𝐨 𝐔𝐬𝐞 𝐒𝐮𝐬𝐩𝐞𝐧𝐬𝐞 𝐀𝐜𝐜𝐨𝐮𝐧𝐭?
A suspense account is used for an unidentified transaction. As soon as that it becomes identified, record them in their respective accounts.
𝐒𝐡𝐨𝐮𝐥𝐝 𝐈 𝐮𝐬𝐞 𝐜𝐚𝐬𝐡-𝐛𝐚𝐬𝐢𝐬 𝐨𝐫 𝐚𝐜𝐜𝐫𝐮𝐚𝐥 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠?
Cash basis vs accrual basis accounting? Ahh! Confusing- what are they? Why and how Cash basis accounting is different from accrual
𝐀𝐜𝐜𝐫𝐮𝐚𝐥 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠- 𝐄𝐱𝐩𝐥𝐚𝐢𝐧𝐞𝐝 𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐀𝐜𝐜𝐫𝐮𝐚𝐥𝐬
Accrual accounting is an accounting method that records revenues and expenses when they incur- same accounting period.