In accounting, the mnemonic “DEALER” is used to remember how debits and credits affect different types of accounts: D – Dividends (or Draws for sole proprietorships and partnerships) E – Expenses A – Assets These accounts normally have a debit balance. L – Liabilities E – Equity R – Revenues These accounts normally have a credit balance. Using this […]
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When a hurricane strikes, have you ever stopped to consider the costs? These powerful storms leave more than just physical damage behind. They also bring serious financial challenges that can linger long after the winds have died down. What if there was a way to manage these financial hurdles more easily? Picture a step-by-step guide
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Accounting has become the most significant and basic function of any business operating in any industry, irrespective of business size. Either in-house or outsourced, every business and company needs an accountant to manage the financial data. But was accounting always there? It’s a question for many. The answer is that accounting has always existed in
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There are certain expectations and standards for students when they are choosing a career path and degree after high school. Many people and career guidance experts suggest going with your passion and pursuing a field that fits your interests. However, on the other side, many people exist who suggests going for a degree or career
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Every year, you have to pay income taxes, sales taxes, and a lot of other business taxes. It’s complex to understand the taxation system and how individuals are taxed by IRS. However, the complexity doesn’t undermine the need to understand taxes and how the taxes are applied. When we talk about businesses, payroll taxes are
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Companies need to follow accounting principles and guidelines while reporting financial information. Generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) provide principles and procedures to guide the preparation of financial statements. IFRSs are standardized accounting principles adopted by countries across the world. Historically, there have been locally accepted accounting regulations. However, the
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What is Cost Accounting? Cost Accounting is referred to as a branch of managerial accounting, which mainly aims to encapsulate all costs within a company, by assessing variable costs along with each step of production. It is considered to be a metric that helps companies to make informed decisions that are backed by reliable quantitative
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Definition: Accounting conventions are a set of industry best practices adapted by company requirements to serve as guidelines to record financial transactions of the company. The accounting conventions play a crucial role in the transition to record financial transactions as per accounting standards in the company’s accounting system. Accounting conventions do not have any legal
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Introduction Over the course of time, it can be seen that the role of accountants has magnified to an utmost extent. This is primarily fueled by the increasing need of the hour to facilitate awareness on the part of stakeholders, to ensure that there are no stones unturned in this aspect. With cases like Enron
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Definition: Reliability Principle is the accounting principle that concern about the reliability of financial information that records and present in the entity’s financial statements. The principle of the reliability principle is that the transactions or event could records and present in the entity’s financial statements only if they could be verified with the reliable objective
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