Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Explain cash basis of accounting?
Professionals such as lawyers and physicians and some relatively small businesses may account for their revenues and expenses on a cash basis. The cash basis of accounting knows revenues when cash is received and recognizes expenses when cash is paid out. For instance under the cash basis a company would treat services rendered to clients in 2010 for which the company collected cash in 2011 as 2011 revenues. Likewise under the cash basis a company would treat expenses incurred in 2010 for which the company disbursed cash in 2011 as 2011 expenses. In the "pure" cash basis even the purchase of a building would be debited to an expense. But under the "modified" cash basis the purchase of long-lived assets such as a building would be debited to an asset and depreciated gradually charged to expense over its useful life. Usually the "modified" cash basis is used by those few individuals and small businesses that use the cash basis. For the reason that the cash basis of accounting does not match expenses incurred and revenues earned, it is in general considered theoretically unacceptable. The cash basis is adequate in practice only under those circumstances when it approximates the results that a company could obtain under the accrual basis of accounting. Companies using the cash basis don't have to prepare any adjusting entries unless they discover they have made a mistake in preparing an entry during the accounting period.
dividend received rs 100was posted to debit to dividend account. the rectification entry n will be what?
what is book keeping?
On october 31 A fund accrued 2000.00 for legal fees. In November 2000 the fund received an invoice. for October 2008 legal fees for an amount of $2500 and paid the invoice on Nov
Write the difference between budget & budgeting? Ans) An estimation of the revenue & expenses over a specified future period of time. A budget can be made for a person, family,
Received and paid the telephone bill for $231 including GST
O B JECTIVES OF FINANCIAL STATEMENTS The fundamental purpose of financial statements according to AICPA is 'to offer qualitative financial information concerning to the busi
Q. Explain about Classified income statement? An unclassified income statement has merely two categories revenues and expenses. In contrast a classified income statement divide
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4
Bank for International Settlements (BIS) A consortium bank recognized to coordinate the collection and rescheduling of German reparations after World War I, the BIS has surviv
What is Post closing trial balance This statement would only show permanent accounts with a balance; all temporary accounts must have a zero balance. Credits and Debits must ba
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd