What is meant by the term accrual basis of accounting? What is its alternative? What do you understand by the term accounting? Relating to accounting, what does the term "de minimis" mean? What is meant by acco
What is meant by accrual accounting? What is the basic accounting equation? What is 'de-professionalization' of accounting? Explain. Explain if a company can change its accounting method for inventory in each accounting period. How inventory purchases work their way through financial statements?
What is meant by Accounting? Accountancy is the flow or process of communicating financial transactions about a business entity. Generally, it is a communication in the form of financial statements like Balance sheets, income statements, cash flow, etc. also, we can say that it is an informatio...
What is meant by "basis of accounting" and "measurement focus," and what are the two bases of accounting and the two measurement focuses? Describe the Accrual Basis of Accounting, and Compare it with the Cash Basis. How...
Under the accrual basis of accounting, insurance expense is the cost of insurance that has been incurred, has expired, or has been used up during the current accounting period for the nonmanufacturing functions of a business. ... Any prepaid insurance costs are to be reported as acurrent asse...
One of these principles relates torevenue recognitionand states that revenue should be recorded when it is earned, rather than when cash is received. With cash basis (the alternative accounting method to accrual) on the other hand, unearned revenue doesn’t exist as an account because revenue is...
Since EBITDA is based on accrual accounting figures, it doesn't accurately represent cash that the company has collected -- just what it has earned on paper [source: Wayman]. Another reason that EBITDA is a bad indicator of cash earnings is because the real cash flow of a company is ...
Define the following term: Accounting. What is meant by the term accrual basis of accounting? What is its alternative? Define the following term: Value chain activities. Explain the difference between maintenance and processing transactions for the sale and collection cycle. which of the two is do...
Maintaining good health is a fundamental part of being alive. Unfortunately, it’s also an expensive part of humanity. Of course, healthcare should always be a financial priority. But there are some procedures we’re unable to anticipate despite how well we take care of ourselves. ...
The current GST rate is 10 percent and is charged on the supply of most goods and services.There are two methods of accounting for GST: on a cash basis or a non-cash (accrual) basis. The method you use affects when you must account for GST and when you are able to claim GST ...