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Author: Navneet Singh
Publisher: Navneet Singh
ISBN:
Category : Business & Economics
Languages : en
Pages : 72
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Book Description
Depreciation is the process of allocating the cost of a tangible asset over its useful life. It represents the reduction in the value of an asset due to wear and tear, obsolescence, or the passage of time. Depreciation is an essential concept in accounting because it helps match the cost of using an asset with the revenue it generates over its useful life. Here are the key points about depreciation: Purpose: Depreciation is recorded to reflect the decrease in the value of tangible assets over time. It allows businesses to allocate the cost of an asset over its useful life rather than expensing the entire cost in the year of purchase. Methods: There are several methods of depreciation, including straight-line depreciation, declining balance depreciation, and units of production depreciation. Each method allocates the cost of the asset differently over its useful life. Recording: Depreciation expense is recorded on the income statement as an operating expense. It reduces the net income and reflects the consumption of the asset's value over time. Simultaneously, accumulated depreciation is recorded on the balance sheet as a contra-asset account. It represents the total depreciation expense recognized for the asset since its acquisition. Useful Life and Salvage Value: Depreciation calculations consider the estimated useful life of the asset and its salvage value (the estimated value of the asset at the end of its useful life). The difference between the asset's cost and its salvage value is spread over its useful life to determine the annual depreciation expense. Impacts: Depreciation affects both the income statement and the balance sheet. It reduces the net income and, consequently, the taxes payable. Additionally, it reduces the carrying value of the asset on the balance sheet, reflecting its decreased value over time. Overall, depreciation is a critical accounting concept used to accurately reflect the consumption of an asset's value over its useful life and to ensure the financial statements provide a true and fair view of a company's financial position and performance.
Author: Navneet Singh
Publisher: Navneet Singh
ISBN:
Category : Business & Economics
Languages : en
Pages : 72
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Book Description
Depreciation is the process of allocating the cost of a tangible asset over its useful life. It represents the reduction in the value of an asset due to wear and tear, obsolescence, or the passage of time. Depreciation is an essential concept in accounting because it helps match the cost of using an asset with the revenue it generates over its useful life. Here are the key points about depreciation: Purpose: Depreciation is recorded to reflect the decrease in the value of tangible assets over time. It allows businesses to allocate the cost of an asset over its useful life rather than expensing the entire cost in the year of purchase. Methods: There are several methods of depreciation, including straight-line depreciation, declining balance depreciation, and units of production depreciation. Each method allocates the cost of the asset differently over its useful life. Recording: Depreciation expense is recorded on the income statement as an operating expense. It reduces the net income and reflects the consumption of the asset's value over time. Simultaneously, accumulated depreciation is recorded on the balance sheet as a contra-asset account. It represents the total depreciation expense recognized for the asset since its acquisition. Useful Life and Salvage Value: Depreciation calculations consider the estimated useful life of the asset and its salvage value (the estimated value of the asset at the end of its useful life). The difference between the asset's cost and its salvage value is spread over its useful life to determine the annual depreciation expense. Impacts: Depreciation affects both the income statement and the balance sheet. It reduces the net income and, consequently, the taxes payable. Additionally, it reduces the carrying value of the asset on the balance sheet, reflecting its decreased value over time. Overall, depreciation is a critical accounting concept used to accurately reflect the consumption of an asset's value over its useful life and to ensure the financial statements provide a true and fair view of a company's financial position and performance.
Author: Navneet Singh
Publisher: Navneet Singh
ISBN:
Category : Antiques & Collectibles
Languages : en
Pages : 662
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Book Description
Accounting is a vital aspect of business that involves recording, summarizing, analysing, and communicating financial information. It provides a systematic way to track the financial activities of an organization, enabling stakeholders to make informed decisions. Here's an introduction to the fundamental concepts and principles of accounting: Purpose of Accounting: The primary purpose of accounting is to provide relevant financial information about a business entity to internal and external users. Internal users include management and employees who use this information for decision-making, planning, and controlling operations. External users include investors, creditors, government agencies, and the public who rely on financial statements to evaluate the financial health and performance of the business. Key Financial Statements: Balance Sheet: It provides a snapshot of the company's financial position at a specific point in time, showing its assets, liabilities, and equity. Income Statement: Also known as the profit and loss statement, it summarizes the revenues, expenses, and net income (or loss) of a company over a specified period. Statement of Cash Flows: This statement reports the cash inflows and outflows from operating, investing, and financing activities, providing insights into how cash is generated and used by the business. Accounting Principles: GAAP (Generally Accepted Accounting Principles): These are a set of standard accounting principles, standards, and procedures that companies use to compile their financial statements in the United States. It ensures consistency, comparability, and transparency in financial reporting. IFRS (International Financial Reporting Standards): These are accounting standards issued by the International Accounting Standards Board (IASB), used by companies in many countries outside the United States. IFRS aims to harmonize accounting practices globally. Double-Entry Accounting: This is a fundamental accounting principle that states that for every transaction, there are at least two accounts involved, with one account debited and another credited. This ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced. Types of Accounts: Assets: Economic resources owned or controlled by the company, such as cash, inventory, property, and equipment. Liabilities: Obligations owed by the company to external parties, such as loans, accounts payable, and bonds payable. Equity: Represents the residual interest in the assets of the company after deducting liabilities. It includes contributed capital from owners and retained earnings. Revenues: Income generated from the sale of goods or services. Expenses: Costs incurred in the process of generating revenue. Accounting Cycle: This is the process that accountants follow to record, analyse, and report financial transactions of a business. It typically includes steps such as identifying transactions, journalizing, posting to ledgers, preparing trial balances, adjusting entries, preparing financial statements, and closing entries. Auditing: This is the examination of financial statements and accounting records by an independent auditor to ensure their accuracy and compliance with accounting standards and regulations. Understanding these basic principles and concepts provides a solid foundation for anyone interested in learning more about accounting and its role in business operations and decision-making.
Author: Oswaal Editorial Board
Publisher: Oswaal Books
ISBN: 9359584177
Category : Study Aids
Languages : en
Pages : 1097
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Book Description
Description of the product: •100% Updated Syllabus & Question Typologies: We have got you covered with the latest and 100% updated curriculum along with the latest typologies of Questions. •Timed Revision with Topic-wise Revision Notes & Smart Mind Maps: Study smart, not hard! •Extensive Practice with 1000+ Questions & SAS Questions (Sri Aurobindo Society): To give you 1000+ chances to become a champ! •Concept Clarity with 500+ Concepts & Concept Videos: For you to learn the cool way— with videos and mind-blowing concepts. •NEP 2020 Compliance with Competency-Based Questions & Artificial Intelligence: For you to be on the cutting edge of the coolest educational trends.
Author:
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 524
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Book Description
Author: Leo Greendlinger
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 464
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Book Description
Author: Christine Rossini
Publisher: Martinus Nijhoff Publishers
ISBN: 9789041196804
Category : Law
Languages : en
Pages : 346
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Book Description
"English as a Legal Language is a lawyer's plain language guide to English legal terminology. Anyone who finds it difficult to express legal terms in English simply looks under the general heading to find the relevant terms and their usage. This book can also be used to find explanations of words from a translating dictionary. Further, it is structured as a thesaurus, organized according to topic with an alphabetical index. More and more, lawyers need the English language. But attempts to convert the language to meet one's own purpose often result in misconceptions. English legal language has its roots in the Anglo-American legal tradition and the non-native speaking lawyer may have difficulty understanding a word choice in English without also seeing how it fits into legal thinking and relates to other words in the subject area as a whole. "English as a Legal Language offers a comparative lexicon of US and UK legal systems, with references to European legal systems. Special features of this work include: - The vocabulary of an entire area of law in each section; - A verb section which provides guidance on substantives, adjectives, adverbs, phrases, usage, as well as sample sentences and clues about typical mistakes; and - An index which gives an alphabetical rendition of the topically ordered definitions - essential for words that have multiple definitions. All lawyers working in English, and especially continental European lawyers, will find this book indispensable in their practices. The book is also of prime interest to business people, accountants, translators, legal secretaries and students. It will enable all practitioners and academics to express complex ideas inEnglish, to understand the intricacies of English as a legal language, and to avoid the potential mishaps, when language barriers prevent a true meeting of minds.
Author:
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 980
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Book Description
Author: Oswaal Editorial Board
Publisher: Oswaal Books
ISBN: 9362393514
Category : Study Aids
Languages : en
Pages : 513
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Book Description
Description of the product: This product covers the following: •Fresh & Relevant with the Latest Typologies of Questions •Score Boosting Insightswith 450 Questions & 250 Concepts (approx.) •Insider Tips & Techniques with On-Tips Notes, Mind Maps & Mnemonics •Exam Ready to Practice with 5 Solved & 5 Self-Assessment Papers
Author: Dr. S. K. Singh
Publisher: SBPD Publications
ISBN: 938872447X
Category : Business & Economics
Languages : en
Pages : 759
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Book Description
1. Introduction to Accounting, 2. Basic Accounting Terms/Terminology, 3. Theory Base of Accounting : Accounting Principles—Fundamental Assumptions or Concepts, 4. Accounting Standards and IFRS, 5. Double Entry System, 6. Process and Bases of Accounting, 7. Origin of Transactions : Source Documents and Vouchers, 8. Accounting Equation, 9. Rules of Debit and Credit, 10. Recording of Business Transactions : Books of Original Entry—Journal, 11. Ledger, 12. Special Purpose (Subsidiary) Books (I) : Cash Book, 13. Special Purpose (Subsidiary) Books (II), 14. Bank Reconciliation Statement, 15. Trial Balance and Errors, 16. Depreciation, 17. Provisions and Reserves, 18. Accounting for Bills of Exchange, 19. Rectification of Errors, 20. Capital and Revenue Expenditures and Receipts, 21. Financial Statements/Final Accounts (Without Adjustment), 22. Final Accounts (With Adjustment), 23. Accounts from Incomplete Records or Single Entry System, 24. Accounting for Not-for-Profit Organisations, Computer in Accounting 1. Introduction to Computer and Accounting Information System (AIS), 2. Applications of Computer in Accounting, 3. Accounting and Database System. Project Work.
Author:
Publisher:
ISBN:
Category : Motor vehicles
Languages : en
Pages : 796
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Book Description
