INTRODUCTION TO ACCOUNTING PRINCIPLES Accounting principles were created to bring in standardization in the field of accounting. They ensure that financial statements as published by various companies follow the same…

ACCOUNTING PRINCIPLES & gUIDELINES 6. TIME PERIOD ASSUMPTION The ongoing business activities are recorded and published regularly for the management and interested parties in an entity. The intervals in which…

HOW ACCOUNTING PRINCIPLES AFFECT FINANCIAL STATEMENTS Accounting Principles standardize the process in which the financial statements are prepared. In this section, we will discuss the effect of how these principles…

INTRODUCTION TO FINANCIAL STATEMENTS Financial Statements represents the financial health of an organization. Following financial statements must be released annually by all corporations as per US GAAP guidelines in the…

ACCRUAL V/S CASH BASIS OF ACCOUNTING There are two methods of bookkeeping -Accrual basis of accounting &Cash basis of accountingAccrual basis of accounting is based on the Revenue recognition principle…

INTRODUCTION TO BALANCE SHEET Balance sheet depicts the financial position of a business entity at a specified moment in time (instead of for a period). It reflects the asset and…

COMPONENTS OF A BALANCE SHEET At a broad level, components on a balance sheet can be classified into following categories -AssetsLiabilitiesShareholders' equityFollowing sections provides an in-depth explanation for each of…

RELATIONSHIP BETWEEN INCOME STATEMENT & BALANCE SHEET Net Income reported on Income statement and Retained Earnings reported on balance sheet are directly related."A positive net income as reported on the…

INTRODUCTION TO INCOME STATEMENT The Income Statement summarizes the revenues and the expenses of a corporation for an accounting period. This period could be a quarter, a month or a…

EXPLANATION OF VARIOUS HEADS ON INCOME STATEMENT The format of income statements may vary depending on operational complexities of the organization. However, more or less each income statement generated as…