Ledger Account Meaning: Ledger Account is a journal in which a company maintains the data of all the transactions and financial statement. Company’s general ledger account is organized under the general ledger…
Category: ACCOUNTING
Journal Entry in Accounting: Definition, Types of Journal and Examples
Introduction: An accounting journal is a detailed account of all the financial transactions done by business. It is used for the future reconciling of accounts and the transfer of information to other…
What is the Meaning and Scope of Accounting in India ?
Meaning of Accounting: Accounting is the language of finance. It conveys the financial position of the firm or business to anyone who wants to know. It helps to translate the workings of…
Cash and Cash Equivalents and Its Importance [Latest Added]
Cash and Cash Equivalents Cash includes legal tender, bills, coins, checks received but not deposited, and checking and savings accounts Cash equivalents are any short-term investment securities with maturity periods of 90…
Current Ratio Formula and It’s Latest Live Example
Current Ratio Formula and Its Example The current ratio, also known as the working capital ratio, measures the capability of a business to meet its short-term obligations that are due within a…
WORKING CAPITAL- Definition, Formula and Its Components
MEANING OF WORKING CAPITAL Working capital, also known as net working capital (NWC), is the difference between a company’s current assets—such as cash, accounts receivable/customers’ unpaid bills, and inventories of raw materials…
Depreciation- Definition , Formula and Types
Depreciation is a reduction in the value of a tangible fixed asset due to normal usage, wear and tear, new technology, or unfavorable market conditions. Unlike amortization which does not have any…
What is mean By Cash Credit? (Updated)
Cash Credit is a short term loan approved by banks for businesses, financial institutions and companies to meet their working capital requirements. The borrowing company can take money, even without a credit…
What is a Bridge Loan and Its Types?(Latest)
A bridge loan is a short-term form of financing that is used to meet current obligations before securing permanent financing. It provides immediate cash flow when funding is needed but is…
What is a Overdraft Account and its Types? (New)
A bank account overdraft happens when an individual’s bank account balance goes down to below zero, resulting in a negative balance. It usually happens when there are no more funds in the…
A Guide Of Importance Of Profit and Loss Statement [New]
A profit and loss statement (P&L), or income statement or statement of operations, is a financial report that provides a summary of a company’s revenues, expenses, and profits/losses over a given period…
What is Closing Stock and Its Methods of Computation (Updated)
What is Closing Stock? Closing stock or inventory is the amount that a company still has on its hand at the end of a financial period. This inventory may include products that…
What is the Cost of Goods Sold?
Cost of goods sold is the total of all costs used to create a product or service, which has been sold. These costs fall into the general sub-categories of direct labor,…
Direct Expenses vs Indirect Expenses
Direct Expenses In short, a direct expense is an expense that is related to the purchase of products. Many companies are in the trade for resale, and they have to buy bulk…
[Latest] Computation of Gross profit and its formula
Profit is the excess of revenue over expenditure. It is a perimeter by which the success and the sustainability of a business are measured A business or an organization that does not…
