This article explains basic accounting structures that exist in a business. The record to keep track in financial statements items is an account.
Posts published in “FINAL ACCOUNTS – BALANCE SHEET”
There is a number of different methods accountants can use to calculate depreciation of Fixed Assets in Balance Sheet. Straight-Line Method. Reducing Balance Method.
Depreciation is a decrease in the value of Fixed Assets. Some assets such as Equipment (machinery) and Vehicles tend to fall in value over time.
Inventories are unsold ready goods, might also be in the form of raw materials and components, or some are in the process as work in progress.
Goodwill represents the reputation and prestige of a business that has been operating on the market for considerable amount of time.
It is difficult to measure the exact value of intellectual property that is expressed in Balance Sheet in the form of Intangible Assets.
Intellectual Property is human capital, know-how and industry knowledge. It is somewhat expressed on Balance Sheet in the form of Intangible Assets.
Balance Sheet is a statement of the estimated value of the company. The information can be used in a number of ways.
Let’s take a look at very basic foundations of the accounting practice. It is important for accountants to follow the same accounting principles.
Final Accounts are records of all financial transactions of the business. At the end of each accounting period accountants draw up the Final Accounts.
Being professional as an accountant is important to prevent illegal practices, maintain a positive brand image and impeccable reputation.
There are two major types of accounting which include financial accounting and managerial accounting.