𝐋𝐞𝐚𝐫𝐧 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐑𝐞𝐜𝐨𝐠𝐧𝐢𝐭𝐢𝐨𝐧 𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐥𝐞 𝐈𝐧 𝟒 𝐌𝐢𝐧𝐮𝐭𝐞𝐬
Under the revenue recognition principle, revenue is recognized when it’s earned, not when cash is received.
𝐋𝐞𝐚𝐫𝐧 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐑𝐞𝐜𝐨𝐠𝐧𝐢𝐭𝐢𝐨𝐧 𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐥𝐞 𝐈𝐧 𝟒 𝐌𝐢𝐧𝐮𝐭𝐞𝐬 Read More »
𝐃𝐞𝐟𝐞𝐫𝐫𝐞𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞: 𝐓𝐫𝐞𝐚𝐭𝐞𝐝 𝐀𝐬 𝐀 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐎𝐫 𝐑𝐞𝐯𝐞𝐧𝐮𝐞?
Have you ever got payment for something before delivering services? Or have an online shopping experience? If yes, then you
𝐃𝐞𝐟𝐞𝐫𝐫𝐞𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞: 𝐓𝐫𝐞𝐚𝐭𝐞𝐝 𝐀𝐬 𝐀 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐎𝐫 𝐑𝐞𝐯𝐞𝐧𝐮𝐞? Read More »
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.
𝐏𝐞𝐭𝐭𝐲 𝐂𝐚𝐬𝐡 𝐈𝐬 𝐀𝐧 𝐀𝐬𝐬𝐞𝐭 𝐀𝐜𝐜𝐨𝐮𝐧𝐭
Is Petty Cash An Expense Account or Asset Account? Petty Cash is not an expense account, it is an asset account.
𝐅𝐫𝐞𝐞 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐕𝐬 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰- 𝐇𝐨𝐰 𝐓𝐡𝐞𝐲 𝐃𝐢𝐟𝐟𝐞𝐫?
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- How Do They Differ?
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?
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.