Merchandising businesses also use balance sheets, just as any business would. They have a particular interest, however, in the inventory found on the bala...

The cost principle, also known as the historical cost principle states that assets should be recorded at their original cost, rather than their current ma...

Sales growth affects cash flow in different ways for different businesses. For those reliant on a large number of smaller suppliers, improved liquidity ma...

Need of management accounting: Management accounting is required to recognize the financial situation of the business, it reports to those inside the orga...

Accounting cost is the recorded cost of an activity. For example, a manager wants to know the accounting cost of a product. If this information is needed ...

Accounting- Eval. #8 Question Answer Closing entry for owner’s drawing account. Credited. Which accounting concept applies when a worksheet is prepared at...

When a note is received from a customer on account, it is recorded by debiting Accounts Receivable and crediting Notes Receivable. note receivable. The di...

Examples of Real Accounts The real accounts are the balance sheet accounts which include the following: Asset accounts (cash, accounts receivable, buildin...

The accounting equation ensures that all uses of capital (assets) remain equal to all sources of capital (debt and equity). Double-entry accounting requir...

MOTIVES FOR HOLDING CASH 1) Transaction motive: Business firm as well as individuals keep cash because they require it for meeting demand for cash flow ar...