adminAccounting Vs. Marketing: Which One Should I Study? Accounting and marketing are two of the most popular courses of study for those wishing to pursue a career in business. Both disciplines involve a combination of theory and practice, and as such, they share some common elements. However, the two disciplines differ in terms of their … Read more
Accounting or Computer Science (Which One Should I Study?) Are you having a hard time deciding between accounting and computer science? The decision can be overwhelming but rest assured that there is no wrong answer. Both fields present their benefits, challenges, and rewards. Whether you’re looking to explore the world of finance or become a … Read more
Accounting For Equity Reserve: Types of Equity Reserves And Accounting Treatment Equity reserves are an important part of any company’s balance sheet. They are a type of reserve that is used to account for the value of equity investments in the company, as well as other assets that may be held by the company. Equity … Read more
Liability vs Equity Liabilities are legally binding obligations to another entity, which can be settled through cash or asset transfers. Examples of liabilities include accounts payable, accrued expenses, wages payable, and taxes payable. Liabilities are often incurred to fund ongoing business activities. In some cases, liabilities may be written off through bankruptcy proceedings. Liabilities can … Read more
Is Software a Current Asset? Computer Software Computer software is classified as an intangible asset and can be considered a current asset depending on its cost or other criteria. Computer software is a set of instructions for a computer that can be used for a variety of purposes. These instructions can be pre-programmed and purchased … Read more
The Difference Between Cash Interest and Interest Expense Cash Interest Cash interest is the amount of interest paid in cash, so it’s a great way to save money. When the Direct Method is used for the operating section of the cash flow statement, cash interest paid is the amount that is recorded. This figure is … Read more
Advantages and Disadvantages of Cash Flow Statement A cash flow statement (CFS) is an important tool for assessing a company’s financial health, as it provides a clear overview of cash inflows and outflows. It measures if the company has enough cash to pay its bills, invest in new projects, and meet its other financial goals. … Read more
Why is Cash Debit in Accounting Cash and Cash equivalent Cash and cash equivalents refer to the value of a company’s assets that can be converted to cash immediately. These assets include bank accounts, commercial paper, and short-term government bonds. Cash equivalents are considered highly liquid assets, providing a company with immediate access to funds. … Read more
How to Calculate Long Term Liabilities? Long Term Liabilities Long-term liabilities refer to debts that are due in more than one year and are listed separately on the balance sheet. These liabilities can be repaid through different current and future business activities. To calculate long-term liabilities, one must first examine the balance sheet and list … Read more
Acceptable Depreciation Methods under IFRS Depreciation expense is an accounting term that refers to the allocation of the cost of a long-term asset over its useful life. depreciation expense is used to record the wear and tear, or obsolescence, of a long-term asset. For example, if a company buys a new factory for $1 million, … Read more