The accounting system is the series of tasks and records of an entity by which transactions are processed as a means of maintaining financial records. Such systems identify, assemble, analyse, calculate, classify, record, summarise, and report transactions and other events.
A credit balance on an income and expenditure account for the club is dealt with by:
A. Adding to the accumulated fund
B. Subtracting from accumulated fund.
C. Adding to club’s bank balance
D. Showing as a prepayment in statement of financial position.
Which one of the following statements is correct as regards the order of liquidity?
A. The most permanent asset appears first.
B. The least permanent asset appears first.
C. fixed assets appear before current assets.
D. long term liabilities appear before current liabilities.
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What’s the point of accounting? If you ask an accountant that question, they may look at you like you’ve grown two heads. The real question should be, why wouldn’t we need accounting? It’s the backbone of our businesses and finances, the reason we were able to develop trade and commerce centuries ago. Without accounting, we wouldn’t have the […]Why
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Cash vs Accrual accounting. Cash accounting is when you received the cash you have to record it, and record your cash when it gets spent. You will need to use an accounting system online or use a notebook. That way you can get organized with your cash being recorded. If you have a small business […]Business 2 Lesson 25
In accounting terms, depreciation is defined as the reduction of the cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible.
An example of fixed assets are buildings, furniture, office equipment, machinery, etc.. A land is the only exception that cannot be depreciated as the value of land appreciates with time.… Read the rest
This concept assumes that the business enterprise will continue to operate for a fairly long period in the future. The significance of this concept is that the accountant while valuing the assets of the enterprise does not take into account their current resale values as there is no immediate expectation of selling it. Moreover, depreciation on fixed assets is charged … Read the rest