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

How to Account for Uncollectible Accounts? Step by Step Guidance with Example

When a company sells goods or services on credit, there is always a risk that some customers will not pay their bills. As a result, companies need to account for the possibility of uncollectible accounts, which are also known as bad debts. Accounting for uncollectible accounts involves estimating the amount of uncollectible accounts and creating …

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How to Account for Discontinued Operations on an Income Statement?

Discontinued Operations are parts of a business that have been sold, disposed of, or abandoned and are no longer considered a part of the company’s ongoing operations. These operations are reported separately in the financial statements due to the significant impact they can have on a company’s financial results. Why do Discontinued Operations matter? Discontinued …

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Rull of Debit and Credit in Accounting for Beginner (Ultimate Guide)

Accounting can be defined as the recording, summarizing, analyzing, classifying, presenting, and reporting of financial information. Financial information is mainly obtained when business transactions take place. Once financial information about business transactions is obtained, it is entered into the accounting system, mainly the general ledgers of a business. At the end of every period, this …

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What Are the Variable Costs? – Definition, Formula, Example, And More

Definition: A variable cost is a direct cost that the total costs or expenses change when the total volume of goods and services that the company produces. A company’s total variable cost increases and decreases with the amount of production, but the variable cost per unit is not changing. If production goes up, variable costs …

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Why is Working Capital Negative? (Explanation With Example)

Introduction: Working capital is the amount of a company’s current assets less current liabilities. This capital of a business is required to fulfill the daily trading operation of a business. Net working capital is normally positive when total current liabilities are less than total current assets. Negative working capital occurs when the current liabilities exceed …

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