Fixed Assets and Depreciation Accounting
by Fixed Assets are business purchases which will be used by the business for a few years. Examples are machinery, vans and computers. To be classified …
Tag: Accounting Concepts
Over and Under Absorption
Usually overheads are absorbed on the basis of predetermined rates. Since predetermined overhead rates are based on budgeted overheads and budgeted production, invariably the overheads …
Ledger Posting
After journal entries are made, the next step in the accounting cycle is to post the journal entries into the ledger. Posting refers to the process of transferring …
Accounting Cycles
Accounting cycle is a step-by-step process of recording, classification and summarization of economic transactions of a business. It generates useful financial information in the form …
Principles and Standards
Economic Entity Assumption The accountant keeps all of the business transactions of a sole proprietorship separate from the business owner’s personal transactions. For legal purposes, a sole proprietorship and its owner …
Accounting Concepts
There are a number of conceptual issues that one must understand in order to develop a firm foundation of how accounting works. These basic accounting concepts are …