Materiality
Materiality is a concept in accounting which states that firm can ignore small information which does not have any significant impact on the business. This also means that a …
Post-closing Trial Balance – Meaning, Purpose And More
A Post-closing Trial Balance lists all the balance sheet accounts that have a non-zero balance at the end of a reporting period. Hence, Companies use this tool to ensure …
Closing Entries
Closing entries are the journal entries which are made at the end of an accounting year to transfer the balance from temporary accounts to permanent accounts. In other words, …
Journal Entry
Journal entries are the first step in the accounting cycle. They are used to record all business transactions and events in the accounting records of a business. A journal …
Horizontal Analysis
Horizontal Analysis calculates the amount and percentage changes in financial figures from one period to another period of time. In other words, it compares financial data for at least …
T Accounts
‘For every action, there is an equal and opposite reaction.’ A couple of hundred years ago, Sir Newton gave this phrase to the world. He gave this statement while …
Vertical Analysis – Meaning, Benefits, Disadvantages And More
Vertical Analysis is one of the financial analysis methods with the other two being Horizontal Analysis and Ratio Analysis. Under vertical analysis (or common-size analysis), one lists each line …
Accountant
An accountant is a professional who performs several accounting functions for a business or an individual. Common functions include audits, financial statement analysis, preparation and submission of tax documents …
Operating Expenses – Meaning, Importance And More
Operating Expenses or OPEX are those that a company incurs to keep the business running or in the normal course of business. A company usually incurs these to meet …
Expense Report
For any business which has employees, the expense report is an important part of its accounting process. It saves the business time and efforts. It makes it easier for …
