As briefly discussed in the chapter “characteristics of financial information”, comparability is one of the qualitative characteristics of useful financial…
As briefly discussed in the chapter “characteristics of financial information”, consistency is one of the qualitative characteristics of useful financial…
As briefly discussed in the chapter “characteristics of financial information”, understandability is one of the qualitative characteristics of useful financial…
Main purpose of financial accounting is to prepare and present the financial statements of an entity which are used by…
Matching principle is one of the basic accounting principles, which requires that revenues earned and expenses incurred to earn those…
Revenue is the income of a business earned from its normal business activities and is often considered as one of…
In accounting, substance over form principle requires that business transactions should be recorded in accordance with their economic substance rather…
It is normal in accounting that in certain areas, uncertainties are involved which require the management to make estimates, so…
In accounting, the cost at which an asset is acquired originally is referred as historical cost. Whereas cost is defined…
In terms of recording revenues and expenses, there are two methods of accounting namely, cash basis of accounting and accrual…