September 25, 2020Charles Lutwidge
Definition By definition, a Trial Balance is not a formal financial statement. It is merely the ledger accounts listed along with their respective closing debit or credit (normal) balances on a certain date. Other financial statements are usually prepared after this..
Any business activity involves costs. Money is spent on diverse processes and purchases: equipment maintenance, raw materials, packaging, transportation, etc. Three are also costs associated with management processes, where wages and salaries are a big percentage of these spendings. Such a..
Definition and Formula The method of accounting for the allocation of costs of any physical or tangible asset during its useful life is known as depreciation. These costs arise due to: Use Wear and tear The passing of time Obsolescence. The..
What are Internal Controls? Let’s first look at the definition of internal controls in accounting. Internal control is a management process involving the people of the organization (the responsibility lies with management and the board of directors). Every company has and..