Ledger Account – Definition, Types, and Examples

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 …

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IASB’s Conceptual Framework – Explained

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 …

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3 Types of Business Entities (Definition and Explanation)

Overview: Before looking into detail of the types of business entities, we would like to introduce the definition of business. Business is the trading activities from 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 nature …

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Top 4 Purposes of Financial Statements: Why are They Required

Purposes of Financial Statements: The main Purpose of Financial Statements is to provide information of 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 common …

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5 Main Elements of Financial Statements: Assets, Liabilities, Equity, Revenues, Expenses

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, …

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Summary of ISA 200: Objective of Independent and Conduct of Auditor

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 …

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[Update 2017] Summary of ISA 720: The Auditor’s Responsibilities Relating to Other Information

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 …

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