Depreciation Methods
The article discusses the process and methods of Depreciation fixed assets, highlighting three main approaches: straight-line, units of … Read More
Non-Current Assets
The article discusses non-current assets, highlighting their classification into fixed (tangible) assets, intangible assets, and natural resources. It … Read More
Types of Financial Statements with Examples
The article outlines the three main types of financial statements—balance sheet, income statement, and statement of cash flows—explaining … Read More
Difference between Primary and Secondary Capital Markets
In finance we make comparison between primary and secondary capital markets. The primary market is the market for … Read More
Organizational Structure of a Corporation
Figure 1 shows an organizational structure of a corporation. At the top are shareholders, who are the owners of the … Read More
Secondary Market Characteristics
Given that secondary markets perform an important economic function, what are the characteristics of good markets? Among the … Read More
What is Fraud Triangle?
The article introduces the concept of the fraud triangle, which consists of perceived pressure, rationalization, and perceived opportunity—three … Read More
Differences between FASB and IFRS
The article discusses the key differences between FASB and IFRS, mainly highlighting how they treat asset and liability … Read More
How Is Inventory Reported on a Balance Sheet?
The article explains how inventory reported on a balance sheet, including its classification as a current asset and … Read More
How Inventory Is Valued?
Conservatism Accounting principle stating that a business must report all items in financial statements at amounts that lead … Read More
Unadjusted Trial Balance
The article covers the concept and purpose of an unadjusted trial balance, explaining its role in verifying debit … Read More
Post-Closing Trial Balance
The article explains the purpose and timing of a post-closing trial balance, which is prepared after closing entries … Read More
Closing Entries
The article discusses the purpose and process of closing entries in accounting, emphasizing their role in resetting temporary … Read More
Adjusted Trial Balance
The article discusses the purpose and structure of an adjusted trial balance and explains how it serves as … Read More
Degree of Operating Leverage
Operating leverage refers to relative amount of costs that are fixed and variable in the cost structure of … Read More