Methods for Valuation of Materials
Materials Issue Methods To find out the cost of materials issued from stores several methods are used. The choice of method should be based on… Read More »Methods for Valuation of Materials
Business Accounts
What is a Suspense Account in Accounting?
Suspense Account Suspense account is an account in the general ledger in which amounts are temporarily recorded. It is used when the proper account cannot… Read More »What is a Suspense Account in Accounting?
Difference between Journal and Ledger
Difference between Journal and Ledger is that the journal is the first step of bookkeeping and ledger is followed by the journal. Because the bookkeeping… Read More »Difference between Journal and Ledger
What is Contra entry? Examples
Contra entry is the entry in which the same account can be debited and credited on the contrary situation. Ex: we debit bank account when… Read More »What is Contra entry? Examples
Cash Book Types
A cash book is a book of original entry in which all the business transactions relating to cash receipts and payments are recorded in chronological… Read More »Cash Book Types
What is Accounting? Components of Accounting
Accounting is the recording of financial transactions along with storing, Sorting, Retrieving, Summarizing, and presenting the results in various reports and analyses. Accounting is also… Read More »What is Accounting? Components of Accounting
Overhead Costs in Cost Management
Overhead costs are indirect costs that can’t be traced back to a specific product as well as ongoing administrative expenses that do not generate revenues. These costs… Read More »Overhead Costs in Cost Management
Difference between Accuracy and Precision
Accuracy and precision are two important factors to consider when taking data measurements. Both accuracy and precision reflect how close a measurement is to an actual value,… Read More »Difference between Accuracy and Precision
Classification of Balance sheet
Classification of Balance sheet presents information about an entity’s assets, liabilities, and shareholders’ equity that is classified into subcategories of accounts. It is extremely useful… Read More »Classification of Balance sheet
What is Firm: Objectives of a Firm
Meaning of Firm According to Professor S.E. Landsbury___” Firm is an organization that produces and sell goods to maximize its profits”. According to Professor R.L.… Read More »What is Firm: Objectives of a Firm