Financial Accounting

Financial Accounting involve recording financial data and preparing financial statements of entity based on accounting standards or reporting frameworks.

  • Types of Financial Statements
  • Element of Financial Statements
  • Balance Sheet
  • Income Statement
  • Accounting principle
  • Assets
  • Liabilities
  • Retained Earning
  • Trial Balance
  • Financial Statements Analysis
  • And others importance topics related to auditing

What Makes a Good Auditor? 8 Points Could Help You To Be A Good Once

Financial Accounting

An auditor is a professional that is responsible for examining the financial statements and internal controls of an organization. These professionals follow standards set by different professional bodies to help them in the performance of their work. Auditors can be internal or external to a business. While there is a difference between internal and external […]

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What are pro forma financial statements?

Financial Accounting

Usually, the financial statements are prepared on the basis of past transactions, which have already occurred. Pro forma financial statements are different from regular financial statements. “pro forma” means: (According to Merriam-Webster) Made or carried out in a perfunctory manner or as a formality Based on financial assumptions or projections Pro forma statements are financial reports are

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Is Depreciation Expenses a Direct or Indirect Cost? (Explanation)

Cost of goods sold, Fixed Assets

Depreciation Depreciation is a non-cash operating activity resulting from wear and tear in the use of assets. Still, it has been quantified by using accounting principles and assumptions in line with the enterprise’s own accounting policies. The amount of depreciation needs to be calculated each year and is debited to the income statement like any

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Accounting for Direct Overhead – Definition, Example, And Accounting Treatment

Cost of goods sold

Definition Direct overhead can be defined as costs that are incurred during the production process, regardless of the output that the company produces. In other words, this is the cost that the company has to pay, regardless of the level of output they operate. Unlike costs like direct material, which are variable and directly proportionate

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Accounting for Raw Material – Definition, Journal Entry And More

Cost of goods sold

Definition Raw materials are the resources that are utilized by the company to produce its goods and services for purposes of resale. Raw materials can broadly be categorized into two categories, which are direct materials and indirect materials. As far as direct materials are concerned, they are used within the final product. Without direct materials,

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Accounting For Direct Labor Costs – Definition, Example, And Accounting Treatment

Cost of goods sold

Definition Direct Labor Costs can be defined as payroll costs that are incurred to manufacture a certain product. These are the costs that can directly be traceable and attributable to a certain product. In other words, direct labor can also be referred to as the wages that are paid to employees and the payroll who

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Accounting for Finished Goods: Definition, Journal Entries and More

Cost of goods sold

Definition Finished Goods are goods that have undergone the manufacturing process, or goods that have been procured for purposes of reselling, and are in the possession of the company, but have not been sold yet. In other words, finished goods are complete and ready to be sold units, which are in the company’s possession. These

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Accounting for Indirect Material- Definition, Example, And Accounting Treatment

Cost of goods sold

Definition Indirect Materials can be regarded as a category of indirect costs. They are materials that are used within a production process, but cannot be individually traced to a certain product. In other words, it can be seen that these are the costs that are mainly incurred holistically within the production or manufacturing process, but

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