Accounting elements refer to which parts are constituted by accounting objects. They are the basic classification of the specific contents of accounting objects according to their economic characteristics. They are the concretion of accounting objects and the basic elements of accounting statements. The f...
Advance Your Accounting and Bookkeeping Career Perform better at your job Get hired for a new position Understand your small business Pass your accounting class Choose Your Video Earn Our Certificates of Achievement Debits and Credits Adjusting Entries Financial Statements Balance Sheet Income ...
Accounting information is not absolute or concrete, and standards are developed to minimize the negative effects of inconsistent data. Without these rules, comparing financial statements among companies would be extremely difficult, even within the same industry. Inconsistencies and errors also would be h...
This assertion attests to the fact that the financial statements are thorough and include every item that should be included in the statement for a given accounting period. The assertion of completeness also states that a company's entireinventory(even inventory that may be temporarily in the poss...
A company purchased equipment in 2011 for ￡25,000; the year-end values for accounting purposes and tax purposes are as follows: Which of the following statements best describes the effect of the change in the tax rate on the company’s 2012 financial statements? The deferred tax liability: ...
But, what are the accounting ramifications of customers paying you before you render services? This puts you in the position of having “unearned revenue”. Unearned revenue, sometimes called deferred revenue, is when you receive payment now for services that you will provide at some point in ...
How are fully depreciated assets reported on the balance sheet? Can a fully depreciated asset be revalued? What is a fully depreciated asset? What is the proper use of the words lend and borrow? What is the accounting treatment for an asset that is fully depreciated, but continues to...
Accounting reports are statements that show the financial health of a business. Some reports show the results of a company’s operations over time; others reveal a snapshot of a company’s financial condition at a particular moment. Common examples of accounting reports include balance sheets, sta...
It is used to assess the financial health of an individual or business. What are the 4 types of financial statements? Balance Sheet: A statement of a company's financial position at a particular point in time, showing assets, liabilities, and net worth. Income Statement: A statement of a ...
This guide introduces the concept of accounting standards and explains why they are important to businesses trying to better manage their finances.