GAAP
What is GAAP? Generally Accepted Accounting Principles (US) are the commonly followed and accepted set of rules, procedures, and guidelines adopted by SEC (Securities and Exchange Commission) for reporting …
Financial Accounting
Bad Debts
Bad Debts Meaning A bad debt is a receivable that is now irrecoverable from that person who was supposed to pay the same. The reason for nonpayment by the …
Trial Balance
Trial Balance Meaning The trial balance is a bookkeeping systematized worksheet containing the closing balances of all the accounts. There are two sides of it- the left-hand side (Debit) …
Fixed Asset Accounting
What are Fixed Assets? Fixed assets are tangible assets purchased for the supply of services or goods, use in the process of production, letting out on rent to third …
Accounting Principles
What are Accounting Principles? Accounting Principles are the rules and benchmarks in the accounting field, a company should follow while reporting the financial statements. The common set of accounting standards …
EBIT – Meaning, Importance And Calculation
EBIT or Earnings Before Interest & Tax is an important measure of a company’s profitability. It measures profit a company earns from its operations. EBIT ignores tax and interest …
Cash Basis Accounting
What is Cash Basis Accounting? Cash basis accounting is an accounting method in which record of the revenues are on its actual receipt and of the payments on its …
Double Entry Accounting
What is Double Entry Accounting? Double Entry Accounting is the scientific, self-sufficient and accurate system of accounting which states that every transaction has a corresponding and an opposite effect of at …
C Corporation
C Corporation – Definition C Corporation is the most widely recognized, distinct legal entity under United States Federal Income Tax Law (USA), wherein a corporation is taxed separately from its …
Partnership
Due to the limitations of the sole proprietorship, many decide to enter into a partnership. Not everyone has everything. Some may have a capital or some may have skills but …