Overview: Trial Balance is the statement or the record that lists down all of the closing account ledgers of the entity for a specific period of time. Those ledgers are present in debit or credit based on the nature of accounts. Trial balance is normally prepared in five columns but sometimes in four, and it […]
What is The Trial Balance? (Ultimate Guide For Beginner) Read More »
Overview Ledger accounts are the accounting units that present the summarized balances of transactions under each category. A general ledger is the collection of these ledger accounts. A business can have five types of ledger accounts: assets, liabilities, equity, revenue, and expense. Let us discuss the definition and types of ledger accounts with the help
What is Ledger Account? – Definition, Types, and Examples Read More »
Many business transactions occur every day in an entity, and those transactions are recorded and controlled by different sources of documents. Some of those documents are recorded and reported for operational reporting. Some of them are the accounting documents that use for recording financial reporting. The following is the list of 11 sources of accounting
11 Importance Sources of Accounting Documents Read More »
Overview: The main objective of the conceptual framework is to provide the concept, principle, and deal with the objective and qualitative characteristics of financial statements, complete definition, the guidance of measurement, and recognition of the five main elements of Financial Statements. The concept of capital and capital maintenance are also dealt with in the framework. The
IASB’s Conceptual Framework – Explained Read More »
Overview: Before looking into the detail of the types of business entities, we would like to introduce the definition of business. Business is the trading activities of one person, a group of persons, commodities, and organizations in which the purpose of those activities is for generating profit directly or indirectly. Business is whatever size or
3 Types of Business Entities (Definition and Explanation) Read More »
Purposes of Financial Statements: The main purpose of financial statements is to provide information about an entity, including, but not limited to, Financial Performance, Financial Position, Profit or Loss, Nature of Business, Assets, Liabilities, and Equity Such information is very important for users to assess the entity’s status to support their decision-making. Before explaining the
Top 4 Purposes of Financial Statements: Why are They Required Read More »
Overview: Financial statements are the important reports of the entity that provide the entity’s financial information at a specific period of time to be used by many stakeholders such as management, employees, the board of directors, investors, shareholders, customers, suppliers, bankers, and other related stakeholders. These statements are prepared as the requirement of management, owners,
5 Main Elements of Financial Statements: Assets, Liabilities, Equity, Revenues, Expenses Read More »
This is the complete summary of ISA 200, Overall Objectives of the Independent Auditor, and the Conduct of an Audit in Accordance with International Standards on Auditing. The summary follows the standard structure of ISA which starts from Introduction, and follow by Objective, Definition, Requirement, and finally Application of Standard. Introduction Overall responsibilities of auditor auditing
Summary of ISA 200: Objective of Independent and Conduct of Auditor Read More »
This is the Summary of SA 720, The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements. The summary here follows the standard structure of ISA which is followed by the Introduction, Objective, Definitions, and Requirement of this standard. The summary here is just for your quick check, and the full standard is
Working as a professional accountant is a cool and rewarding good salary. Most companies required these kinds of jobs to record and control their accounting and financial records for business use and for their owners. Some of those are employed as high-ranking executives in the company while others also work for their own company or
Top 4 Professional Qualifications for Accountants in 2022 Read More »
