Source Documents

What Are the Source Documents in Accounting? In order to complete the accounting records, a bookkeeper needs to have source documents to work from which show what the financial effect of the transactions is. Types of Source Documents The source documents themselves are introduced here. They come in many different shapes and sizes, but they … Read more

Which Is Better: Master’s in Accounting or ACCA?

While your enthusiasm for numbers and accounting might have inspired you to pursue a degree in commerce or economics, it’s a challenge to figure out what your next step in higher education may be. Given the many options available, one of the dilemmas that students of accounting or finance face is whether to pursue ACCA … Read more

Cash-Basis vs Accrual Accounting

Cash-Basis vs Accrual Accounting – Essential Aspects to Consider Before Choosing Accounting is an essential aspect of any business. There are primarily three methods of accounting – Cash-basis, accrual accounting and modified cash-basis, and each method has its pros and cons in application. The two accounting methods that have a major difference in their implementation … Read more

Statement of Affairs

Statement of Affairs: Definition Similar to a balance sheet, a statement of affairs is a statement of assets and liabilities that is prepared to find out capital under the single entry system. When calculating profit or loss using this method, it is worth considering both fresh capital (or additional capital) and drawings. Fresh Capital or … Read more

Fundamentals of Financial Accounting for Dummies 2019

When starting a business, whether online or traditional, it is imperative to learn the fundamentals of financial accounting. You cannot expect your business to grow if you don’t know how to read the numbers or metrics and how to interpret these. Yes, there are automated tools you can use to keep track of your business’ … Read more

Single Entry System in Accounting

What Is the Single Entry System? The single entry system is a bookkeeping system in which, sometimes, both aspects of a transaction are recorded, whereas other times, only one aspect of a transaction is recorded. In certain cases, the complete transaction is not recorded. Introduction to the Single Entry System in Accounting In small businesses, … Read more

Difference Between Finance and Accounting

Introduction Finance and Accounting might sound like similar words but they are actually two different terms. These both have interesting career opportunities for youngsters and university graduates. Well if you are an undergraduate student or curious to know about these terms then this article will help you to increase your knowledge on the two topics. … Read more

Limitations of Financial Accounting

What Is Financial Accounting? Financial accounting, which is historical in nature, is mainly concerned with the recording of day-to-day business transactions. It is simply a post-mortem of past events. Under financial accounting, business transactions are first recorded in the books of original entry. In turn, they are classified into the ledger and finally summarized by … Read more

Advantages and Disadvantages of Double Entry Bookkeeping

Advantages of Double Entry Bookkeeping The advantages of double entry bookkeeping include the following: Each transaction is recorded with its twofold aspects, so the total of one side must be equal to the total of the other side. This helps to improve the accuracy of records. Maximum information can be obtained by the owner of … Read more