What is control account and how does the control account work? And which accounts does it adjust or control particularly? […]

Under the revenue recognition principle, revenue is recognized when it’s 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 […]

Contra Asset vs Contra Revenue…. If you are wondering what is the difference between a contra asset account and a […]

Modified accrual accounting recognizes revenues only when measurable and available. And recognize expenses when they incur.

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.

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.

Looking puzzled! Why there are too many different types of working capital? why they are categorized so broadly? & most importantly […]

Cash basis vs accrual basis accounting? Ahh! Confusing- what are they? Why and how Cash basis accounting is different from accrual […]

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.