Commerce Aspirant

Basis of Accounting – The basis of accounting refers to the method under which revenues and expenses are recognized in the financial statements of any organization. Businesses need to record transactions using one of two primary methods: Cash Basis Accrual Basis and; Hybrid Basis Cash Basis of Accounting: In this system, income is reported when … Read more

Single Entry System or Accounting from Incomplete Records,  is a method of accounting , in which , unlike the Double Entry System of Accounting, both the aspects of a transaction , are not recorded .  In  a Single entry system,  transactions relating to Cash Book, Personal Account of Debtors & Personal Account of Creditors are … Read more

Basic Accounting Concepts Accounting is based on some Principles which are based on some assumptions which are called Accounting Concepts. These basic accounting concepts are widely accepted all over the world by professionals. These concepts / Principles are listed below. a.Business entity; b. Money measurement; c. Going concern; d. Accounting period; e.Cost Concept f. Dual … Read more

Generally Accepted Accounting Principles (GAAP) Theory base of accounting comprises concepts, conventions, principles, rules, standards and guidelines developed, to provide uniformity and consistency to accounting records and enhance its utility, to various users of accounting information. It helps us understand the basics of accounting and also brings uniformity and consistency in the financial statements. Theory … Read more

Basic Terms in Accounting  Entity: It means a reality that has a definite individual presence or existence. Business entity implies an explicitly recognizable business enterprise like Super Bazaar, Hire Jewellers, ITC Limited, and so on. An accounting framework is constantly devised for a specific business entity (additionally known as accounting entity). Transaction: An event or … Read more

Objectives of Accounting: As an information framework system, the essential objective of accounting is to give useful data to the interested group of users, both external and internal. The necessary data, especially in case of external users, is given in the form of financial statements, viz., profit and loss account and balance sheet. Other than … Read more

All organization which are driven by    profit motive perform  several transactions  of financial nature such as purchasing of goods, selling of goods, incurring expenses and receiving income etc. All organization undertake several financial transactions  such as purchase and sale of goods, incurring revenue and capital expenses and receiving revenue and capital receipts. What is … Read more

Meaning of Accounting: Accounting is the language of finance. It shows the financial position of the business or the firm to any individual who wants to know. It assists with translating the functions and the workings of a firm into substantial reports that can be analyzed. The American Institute of Certified Public Accountants (AICPA) in … Read more