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 …
Financial Accounting
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 …
Withholding Tax – All You Need To Know
Withholding Tax or the retention tax is a way of deducting tax at the source of the income to avoid collecting tax after the income is earned. Usually, it …
Trial Balance vs Balance Sheet – All You Need To Know
Balance sheet and trial balance are two important reports of the accounting system. The balance sheet is one of the three financial statements that a company needs to file …
Capital Receipt vs Revenue Receipt – All You Need To Know
Capital Receipt and Revenue Receipt are an integral part of business activity, just like capital expenditure and revenue expenditure. Both represent an inflow of cash for the business. Although …
CAPEX vs OPEX – All You Need To Know
Expenses are as important for a company as revenues. A business can’t earn revenue, if it does not make necessary expenses. We can divide business expenses primarily into capital …
Accrual vs Deferral – All You Need To Know
Businesses require the allocation of both incomes and expenses to the same accounting period. However, there are often instances when the expenses and revenues do not occur or business …
Assets vs Liabilities – All You Need To Know
Even if you don’t have a business or accounting or financial background, you would have heard the terms assets and liabilities. These terms are mostly in use in the …
