4. What is Small Business Accounting and Bookkeeping

What is Small Business Accounting and Bookkeeping?

March 6, 2023Posted inAdvance AccountingNo Comments
Small business accounting and bookkeeping refer to the process of recording, classifying, and summarizing financial transactions to provide information that is useful for making business decisions. This process involves maintaining financial records, such as invoices, receipts, and bank statements, and using them to create financial statements, such as income statements and balance sheets.

What is Ratio Analysis?

March 6, 2023Posted inAdvance AccountingNo Comments
Ratio analysis is a method of evaluating a company's financial performance by comparing various financial and operational ratios to industry averages or to the company's own historical results. This analysis typically involves calculating a set of financial ratios, such as the current ratio, quick ratio, gross margin, and return on equity, and interpreting the results in order to assess a company's liquidity, profitability, efficiency, and overall financial health. Ratios can also be used to compare a company's performance to that of its competitors or to the overall industry.
What is the Meaning of Investment

What is the Meaning of Investment?

March 4, 2023Posted inAdvance AccountingNo Comments
An investment is the use of money or capital to purchase an asset with the expectation of earning income or capital gains in the future. Investments can take many forms, including stocks, bonds, real estate, mutual funds, and commodities. The goal of investing is to put money to work in an effort to grow wealth over time.
2. What is the Meaning and Definition of Depreciation

What is the Meaning and Definition of Depreciation?

March 3, 2023Posted inAdvance AccountingNo Comments
Depreciation is the systematic and rational allocation of the cost of an asset over its useful life. It is a method of accounting that is used to account for the decline in value of an asset over time, as a result of wear and tear, obsolescence or other factors. It is an expense that is recorded on the income statement, which reduces the value of an asset on the balance sheet over time.
1. What is Accounts of Non-Trading Institution, Individuals

What is Accounts of Non-Trading Institution, Individuals?

March 3, 2023Posted inAdvance AccountingNo Comments
Non-trading institutions, such as government agencies and non-profit organizations, typically have accounts similar to those of businesses, such as checking and savings accounts. These accounts are used to manage the institution's financial transactions and funds. Individuals also have accounts such as checking, savings, and investment accounts. These accounts are used to manage personal finances and savings.
What is shares?

What is shares?

March 3, 2023Posted inAdvance AccountingNo Comments
Shares, also known as stocks or equities, represent a unit of ownership in a company. When a company issues shares, it is effectively selling a small piece of the business to investors. The total value of a company's shares is known as its market capitalization.
BRS (Bank Reconciliation Statement)

What is BRS (Bank Reconciliation Statement)?

March 3, 2023Posted inAdvance AccountingNo Comments
A bank reconciliation statement is a document that compares the cash balance in a company's accounting records to the corresponding amount on the bank statement. The statement is used to identify and reconcile any differences between the two records, such as outstanding checks, deposits in transit, or bank fees. The purpose of a bank reconciliation is to ensure that the cash balance in the company's records is accurate and that all transactions have been recorded properly.