Financial Accounting

An invoice is defined as: An itemized bill for goods sold or services provided, containing individual prices, the … Read More

By the end of this article, you will be able to learn: What is the expenditure? What is … Read More

Reporting profit or loss and other comprehensive income involve two concepts related to the decrease of economic benefits to the … Read More

Equity is the third major element of the statement of financial position. The definition of equity is shown in … Read More

A liability is an obligation of the business that will have to be settled in the future. The definition is … Read More

An asset is something that a business owns that has an economic benefit in the future (see GAAP box). GAAP An … Read More

In general, business entities can take one of three forms, as illustrated in Figure 1: a limited liability company, … Read More

By the end of this tutorial, you will be able to learn: What are the uses of accounting … Read More

Any activity involving money is referred to, among accountants, as a transaction. Any transaction which involves an immediate … Read More

Those responsible for managing a business from day to day require accounting information to: 1. Ensure that business … Read More

Financial accounting involves two related functions – the recording of transactions and the preparation of financial statements. A … Read More