Tag Archives: #GAAPStandards

What are Bookkeeping Accounting Principles?

Bookkeeping Accounting Principles Bookkeeping Accounting Principles are closely intertwine terms that encompass the meticulous documentation, arrangement, and communication of financial transactions and data for a business or organization. Despite their interconnections, these two concepts hold separate significance. Going Concern Principle: This principle assumes that a business will continue its operations in the foreseeable future.… Read More »

How to prepare provisional financial statements?

Provisional Financial Statements Preparing provisional financial statements entails the development of interim financial statements for a designated timeframe prior to the availability of the final statements. Here are the steps to prepare Provisionals financial statements: 1. Gather Available Data: Collect all available financial data for the period you want to prepare the pro visional… Read More »

What is book keeping accounting?

Book Keeping Book keeping is a subset of accounting and refers to the process of recording and organizing financial transactions of a business. It involves systematically recording the financial activities such as sales, purchases, receipts, and payments in appropriate books or electronic records. Accounting, on the other hand, encompasses a broader set of activities… Read More »

Is depreciation expense or loss?

Depreciation expense or loss Depreciation is considered an expense in accounting, but it is not the same as a loss. In accounting, depreciation is the process of allocating the cost of a long-term asset over its useful life. It is an expense that represents the reduction in the value of the asset over… Read More »

What is a deferred revenue expenditure?

Deferred Revenue Expenditure Understanding : A Comprehensive Guide In the realm of accounting and financial management, understanding various types of expenditures is crucial for accurate financial reporting and decision-making. One such concept is “deferred revenue expenditure.” Although it may sound complex, grasping its essence is vital for managing a company’s finances effectively. 1.… Read More »

Why is provision for depreciation not an expense?

Why is provision for depreciation not an expense Provision for depreciation is not considered as an expense but rather as a gradual reduction in the value of an asset over its useful life. Unlike immediate expensing, depreciation allows for the allocation of an asset’s cost over time. To visit- https://www.mca.gov.in/ Depreciation represents the decrease in… Read More »