Carrying Value – Meaning, Examples and More
Carrying value, or the carrying amount, or the book value, is the value of assets based on figures in the balance sheet. It is the cost of an asset …
Financial Accounting
Profit and Loss Statement
Introduction to profit and loss statement The profit and loss statement is one of the three most important financial statements that reflect any Company’s performance and financial standing over …
Units of Production Depreciation: Meaning, Calculation, Benefits and More
Units of Production Depreciation is a method for calculation of depreciation. It takes into account asset usage or the number of units an asset produces during the year to …
Consignee – Meaning, Role, Difference and Accounting Entries
Consignee – Meaning The Consignee and the Consignor are two terms used in consignment business where a manufacturer or wholesale dealer sends a shipment of goods to a seller …
Accumulated Depreciation – Meaning, Accounting and More
Accumulated depreciation is the total or cumulative depreciation amount of an asset. That is to say, this accumulation is since its purchase by the company and up to a …
Cost Accounting vs. Financial Accounting – All You Need to Know
Cost accounting and financial accounting are the branches of accounting. Both these deal with recording and presentation of financial information, but their objective is different. To better understand these …
Debits and Credits
Introduction to Debits and Credits Debits and credits are two sides of the same transaction in the world of accounting. They get recognition at the time of recording the …
Liquid Assets
12Meaning of Liquid assets Liquid assets are those assets that are equivalent to or as good as cash. Their liquidation is secure, meaning that the holder can convert them …
Sum of the Years Digits Depreciation
Sum of the year’s digits depreciation or SYD, as the name suggests, is a method to calculate depreciation. Since this method accelerates the recognition of depreciation it is a …
Short-term Liabilities
A liability is a debt or legal obligation of the business to another individual, bank or entity. There could be both short-term liabilities as well as long-term liabilities. Liability …
