Tag Archives: #FinancialAccounts

What is the difference between closing and finalizing accounts?

What is the Difference Between Closing and Finalizing Accounts? Introduction In the world of accounting, the terms “closing accounts” and “finalizing accounts” are often used interchangeably. However, they have distinct meanings and applications in financial reporting. Understanding the difference between these two concepts is crucial for accountants, business owners, and financial analysts to ensure accuracy… Read More »

What is nominal account?

Nominal Account In accounting, a nominal account is a general ledger account that is use to record revenues, expenses, gains, and losses for a specific accounting period. These accounts are also known as income statement accounts or temporary accounts. Because their balances are reset to zero at the end of each accounting period, typically a… Read More »

What are the functions of the accounts receivable?

The functions of the accounts receivable The functions of accounts receivable in accounting are as follows: 1.Recording Sales: Accounts receivable records the amount of money owed to a business by customers for goods or services sold on credit. It serves as a record of credit-based sales made by the business. 2.Payment Tracking: Accounts receivable tracks… Read More »

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