Archive | Accounting

Credit: Meaning and Mechanisms of Operating It | Accounting

After reading this article you will learn about:- 1. Meaning of Credit 2. Mechanisms of Operating Credit 3. Advantages 4. Disadvantages. Meaning of Credit: Cash transaction is one in which cash is not paid at the time of purchase of a commodity or service. A credit transaction means that the buyer will pay for the […]

Taxation: Principles and Forms | Accounting

After reading this article you will learn about the principles and forms of taxation. Principles of Taxation: Taxation is required to cover Government expenditures such as cost of: (i) Administration, (ii) Defence from external aggression, (iii) Police for the maintenance of law and order, (iv) Judicial courts for administration of justice, (v) Schools and colleges […]

How to Calculate Depreciation of an Asset?

The following methods may be employed for calculating depreciation of an asset: 1. Straight Line Method 2. Reducing Balance Methods 3. Production Based Methods 4. Repair Provision Method 5. Annuity Method 6. Sinking Fund Method 7. Endowment (Insurance) Policy Method 8. Revaluation Method 9. Sum of the Digits Method. 1. Straight Line Method: This method […]

Accounting Concepts: Top 7 Concepts of Accounting

This article throws light upon the top seven concepts of accounting. The concepts are: 1. The Money Measurement Concept 2. The Business Entity Concept 3. The Ongoing Concern Concept 4. The Cost Concept 5. The Dual Aspect Concept 6. The Accrued Concept 7. The Realisation Concept. Concept # 1. The Money Measurement Concept: The record […]

Budgetary Control: Meaning and Requisites | Accounting

After reading this article you will learn about:- 1. Meaning of Budgetary Control 2. Objectives of Budgetary Control 3. Merits 4. Limitations 5. Requisites 6. Classification. Meaning of Budgetary Control: The budgetary control is defined as the establishment of budget relating to the responsibility of executive to the requirement of a policy and the continuous […]

Auditing: Meaning, Objectives and Advantages | Accounting

After reading this article you will learn about:- 1. Meaning of Auditing 2. Objectives of Auditing 3. Advantages 4. Classification. Meaning of Auditing: Auditing, therefore, is an examination of the books of accounts and vouchers of the business by an independent person who should be qualified for the job, in order to ascertain their accuracy. […]