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In our previous articles on Lower of Cost or Market Concept, we have given a short introductory lecture on that method. Today you will learn how any company applies the method of lower-of-Cost-or-Market in their operational activities through this example: For example ABC Company applied the lower-of- cost-or-market method in each individual type of food.…

This is the third article on Lower of cost or market. In the first article on this topic, we give a good description on lower of cost market concept. On the second article, we highlighted some of’ the Methods of Lower of Cost Or Market concept. Today we will learn about the evaluation of the…

The bank and the depositor generally maintain separate records of the depositor™s checking account. Bank reconciliation is an analysis of the items and amounts which resulted in the cash balance reported in the bank statement differing from the balance of the cash account in the ledger. The adjusted cash balance is determined in the bank…

Accounts payable is a frequently used account”it is used whenever a company buys anything on credit. This might be inventory, office supplies, or equipment. When the merchandise is received, the company debits the appropriate account for whatever is received, such as company debit inventory if inventory was received; or debit office supplies if any office…

Today in this Free Online Accounting Tutorial you will know: Principles of Accounting Revenue Recognition Principle of Accounting Matching Principles of Accounting Cost Principle of Accounting Full Disclosure Principle Basic accounting rules and guidelines are known as Accounting Principles. There are mainly 4 Accounting Principles: Revenue Recognition Principle: The revenue recognition principle emphasizes that any…

Today’s accounting lesson will help you to learn Definition, Types & Example of Adjusting Entries. Also at the bottom of this tutorial, you will find a Free Accounting Training Video on Adjusting Entries. Adjusting Entries can be defined as journal entries, prepared at the end of each accounting period to identify and spread total income…

From previous article you learned about Definition, Types & Example of Adjusting Entries. Today’s topic is on Adjusting Entries for Deferrals. Prepaid expenses and unearned revenues are the example of deferrals. Generally prepaid means which is paid before and prepaid expense means the expense which is paid in advanced. Unearned revenue is received of cash…

We have so far shared some complete guideline on forensic accounting. Today we will share some videos on this topic. But before going further, please read these following articles to have a depth knowledge on this topic: What is Forensic Accounting Meaning & Functions of Forensic Accountants Knowledge,Skills & Abilities of Forensic Accountants Who needs…

Lets learn about accounting procedure of Purchase of Inventory. Companies basically made their purchase inventory on cash or credit. The companies usually record purchases when they receive the merchandise from the seller. Companies record cash purchases by an increase in Merchandise Inventory and a decrease in Cash. A purchase invoice should support each credit purchase.…

After Adjusting Entries for Deferrals now we will discuss on adjusting entry is accruals. Accruals means revenue is earned and an expense is incurred but they are not still recorded or collected. Adjusting entry of accruals makes accruals be recorded within proper accounting period. Accruals are two types: accrued revenues and accrued expenses Accrued Revenues:…