Financial accounting is a branch of accounting concerned with the summary, analysis and reporting of financial transactions related to a business.
Financial accounting is the process of recording, summarizing, and reporting a company's business transactions through financial statements.
29 Feb 2024 — 29 Feb 2024Financial accounting is the systematic process of recording, summarizing, and presenting financial transactions of a business entity.
7 Mar 2024 — 7 Mar 2024Financial accounting is the process of recording, analyzing, and summarizing the financial transactions of an organization for an accounting.
9 May 2024 — 9 May 2024Financial accounting is the process of recording, summarizing, and reporting financial transactions of a business. It involves preparing.
Financial Accounting is the process of documenting, analyzing and reporting every transaction of a business or an organization, in order to assess the financial.
Learn the underlying principles and concepts of financial accounting, accounting techniques and the preparation of basic financial statements.
There are 4 modules in this course. Master the technical skills needed to analyze financial statements and disclosures for use in financial analysis, and learn.
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From Financial Accounting
Bank A/c Dr. \tTo Equity Share Capital A/c (Being issue of equity shares for cash).
Outstanding expenses are expenses incurred during the period but unpaid at year end. They are added to the related expense in Profit & Loss Account (to charge full expense of the period) and shown as a current liability in the Balance Sheet. Prepaid expenses are amounts paid in advance for future periods. They are deducted from the related expense in Profit & Loss Account (to charge only current period expense) and shown as a current asset in the Balance Sheet. This ensures correct matching of expenses with the period.
Inventory is valued at the lower of cost or net realisable value (NRV) to follow the prudence principle and to avoid overstatement of assets and profits. Cost represents the expenditure incurred to bring inventory to its present condition. NRV is the estimated selling price less costs of completion and selling expenses.
If NRV falls below cost due to damage, obsolescence or fall in market price, inventory is written down to NRV and the loss is recognised in the current period. This ensures that financial statements show stock at an amount that is expected to be realised and that profits are not inflated.