What is Balance Sheet

What is Balance Sheet?

February 23, 2023Posted inBasics of AccountingNo Comments
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, such as the end of a financial year. It shows the company's assets, liabilities, and equity and it is used to measure the company's overall financial health. The balance sheet is called a "balance" sheet because the total value of the assets must equal the total value of the liabilities plus the equity.
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.