What is Bad Debts

What is Bad Debts?

February 23, 2023Posted inBasics of AccountingNo Comments
Bad debts refer to the money a business is unable to collect from customers who have not paid for goods or services that have been provided. It is an expense that is recorded when a business determines that a customer's account is uncollectible. The expense is recorded in the company's income statement, and it reduces the company's revenue for the period.
What is Accrued Income

What is Accrued Income?

February 23, 2023Posted inBasics of AccountingNo Comments
Accrued income refers to income that a business has earned but has not yet received or been billed for. This income is recorded in the company's financial statements as an asset on the balance sheet, and the corresponding expense is recorded on the income statement.
What is the System of Stock Taking

What is the System of Stock Taking?

February 23, 2023Posted inBasics of AccountingNo Comments
Stock taking is the process of physically counting a company's inventory to determine the quantity and value of goods on hand. The purpose of stock taking is to provide an accurate and up-to-date record of a company's inventory, which is important for financial reporting, inventory management, and cost control.
What is Company Accounting

What is Company Accounting?

February 21, 2023Posted inBasics of AccountingNo Comments
Company accounting refers to the process of recording, classifying, and summarizing financial transactions to provide financial statements and other financial information about a company. This information is used by management, shareholders, investors, and other stakeholders to make informed decisions about the company's financial performance and future prospects.