Purchase as Expense A purchase is not necessarily an expense in accounting. A purchase is simply the act of acquiring goods or services by exchanging money or other assets. However, a purchase can become an expense when the goods or services acquired are used up or consumed in the normal course of business. At that… Read More »
Current assets to proprietor’s fund ratio The current assets to proprietor’s fund ratio is a financial metric used to assess the liquidity and financial health of a business. It measures the relationship between the current assets, which are assets that expect to convert into cash within one year, and the proprietor’s fund, which represents the… Read More »
New income tax law New income tax law, In 2009, the Indian government introduced the Direct Tax Code (DTC), a new income tax law aimed at simplifying and streamlining the existing tax system. The intention was to replace the complex and burdensome Income Tax Act, 1961, which had undergone numerous amendments over the… Read More »
If an invoice is not approved, what will happen If an invoice is not approved, it will be considered as a disputed invoice. The payment process for the disputed invoice will be put on hold until the issue is resolved. The invoice will be sent back to the supplier with a reason for rejection and… Read More »
Does Capital expenditure affect the financial statements of a business Capital expenditures are investments made by a business in long-term assets like property, plant, and equipment. These expenditures have important implications for a business’s financial statements: 1.Balance Sheet: Capital expenditures increase the assets of the business. Long-term assets, such as buildings, machinery, and equipment, are… Read More »
What is a Preliminary Expense Preliminary Expense are the expenses that a company incurs before it starts its operations. These expenses are related to the formation, registration, and organization of the company, such as legal fees, accounting fees, and other administrative costs. In accounting, preliminary expenses are treated as an intangible asset and are shown on… Read More »