Accounting & Financial Statements

Introduction ‘Cash is king’ is a popular saying that you might’ve heard. This is particularly true for all types of businesses, as cash is a measure of their financial standing in the long run. Hence, cash management is an essential skill to sustain the ongoing activities of a business, mobilize funds where needed and optimize […]

While payments are an integral part of a business, you’d know that ensuring payment inflow isn’t effortless if you’ve ever chased an invoice. Thus, a bill of exchange is curated to keep everybody liable for making timely payments.  The Negotiable Instruments Act 1881 regulates the provisions for bills of exchange. As per Section 5 of

Some business dealings are negligible to warrant mentioning in a financial report. The idea of materiality is used to determine what information should be included in a financial statement and what information should be omitted so that the statement is as concise and unified as possible for use in an external study of the company’s

What Is The Amortization and How Does It Work Did you know that the word amortization means ‘kill’? So, when used in a financial context, amortization means the process of killing and erasing off a debt.  What is the meaning of amortization? Amortization is a method of reducing the book value of a loan or

One thing that holds utmost significance in accounting and finance is the net wort – how much the company owns and how much it owes. It is also called the book value of a company. The most prominent way to know how much a company values, the balance sheet is the key. A balance sheet

It has frequently been noticed that a deficit of working capital causes a business to collapse. A commercial company may only succeed if its working capital is managed well. The business may run its operations while incurring losses, but it cannot thrive without liquidity. It serves a crucial role in financial management as well. Therefore,

You’ve probably heard the word “bookkeeping” used multiple times in relation to business and finance. To give you a gist, bookkeeping is essential for every business, regardless of the company’s transactions, industry, nature and size.  Whenever you are commencing a business, maintaining proper records is essential. So, to help you understand the concept of bookkeeping,

Cost Accounting and Financial Accounting are the terms used for systematically recording, analyzing and presenting the financial data about a company and its product lines. It becomes pertinent for the corporations to maintain such financial data for their further growth and to bolster the confidence among their shareholders as well as the Management.  This guide

Introduction Contingent liabilities mean a planned financial commitment that results from previous events, whose status is determined by the occurrence or non-occurrence of an unpredictable future event that is outside the control of the business. It can also be a current debt whose repayment is uncertain, or the exact amount is unknown. The timing, size,

When companies make an assessment, financial statements must be computed and prepared to adhere to the correct accounting rules. The matching principle is one such concept. The matching concept must be used to generate documentation more effectively with correct analysis. This article will find the answer to what is matching concept, its advantages, limitations, and