Companies will often list on their balance sheets cost of goods sold (COGS) or cost of sales (and sometimes both), leading to confusion about what the two...

See by nature a provision is a nominal account since as per Accounting Standard 29, it is a possible future obligation from past services rendered. Howeve...

Horizon Value Example First, determine the annual cash flow. This will be the assumed cash flow for the foreseeable future. Next, determine the required r...

Moveable Assets means all tangible property, including inventory, plant and machinery, vehicles, testing and other equipment, and spare parts for any such...

The calculation for the return on operating assets is to divide net income by the gross recorded amount of all assets used to generate revenue. Two issues...

The accumulated depreciation account is a contra asset account on a company’s balance sheet, meaning it has a credit balance. The amount of accumulated de...

We can rectify these errors by giving an explanatory note in the account or by passing a journal entry with the help of Suspense A/c. When we detect an er...

The company can make contingent liability journal entry by debiting the expense account and crediting the contingent liability account. This journal entry...

Debits and credits are the opposing sides of an accounting journal entry. Rule 1: All accounts that normally contain a debit balance will increase in amou...

Account Form and Report Form Balance Sheets The left column of the account form balance sheet lists assets, while the right column lists liabilities and e...