This article defines a transaction, and explains how transactions are identified and analyzed in accounting. It includes a transaction analysis chart that helps the reader to determine whether a statement or event qualifies as a transaction to be recorded.
When analyzing transactions, they normally affect one or more types of accounts used in the accounting system. This article explains these six types of categories of accounts with the DEALER acronym, Drawings, Expenses, Assets, Liabilities, Equity, and Revenue, with the use of examples.
This article summarizes the definition of Accounting based on the authors years of experience in the field both professionally and academically. The importance of Accounting is also explained as well as the various categories or types of Accounting such as Managerial Accounting, Bookkeeping etc.
In the preparation of financial statements, adjustments are made to ensure that actual profits are disclosed at the end of the period. Among these adjustments include prepayments, accruals, provisions for depreciation, bad and doubtful debts. Today, I would like to focus on the depreciation aspect.
Literally everything is being affected by technology. The field of accounting is no exception. Accounting is undeniably changing in a fast-paced technological environment, largely due to the emergence of intelligence technology, including machine learning, and Artificial Intelligence (AI).
The CPA (Certified Public Accountants) Board Exam is one of the toughest government examinations in the Philippines. It takes five years of rigorous studies and a six month period of review at the CPA Review Centers.
The accounting equation is the foundation for the double entry accounting system where debits must equal credits. Before we look at accounting entries we need to understand the accounting equation.
The Commission on Audit (COA) under the 1987 Constitution of the Philippines, prescribed the adoption of the New Accounting System for the Barangay that was implemented beginning the fiscal period, 1987.
Analysis and interpretation of financial statements are an attempt to determine the significance and meaning of the financial statement data. so that a forecast can be made of the prospects for future earnings ability to pay interest, debt...
Auditing is systematic examination of books and records of an organisation to confirm whether the prepared financial statements are giving true and fair view or not. Systematic investigation of books and records to fulfill a specific purpose is called investigation.
Preliminary steps before commencing a Company Audit; Verification of Appointment, Verification of Memorandum, Verification of Articles, Verification of Prospectus, etc.
Passing the CPA Board Exam is difficult. Making it to top 10 is exhilarating, especially if you come from a small public college south of Manila - DFCAMCLP, a project by incumbent Mayor Nene Aguilar.
The three main types of business activities are financing, investing and operating. These three types of activities all involve the flow of money, however what the money is for will be the determinate of which category it belongs in. It is...
The shift to the New Government System was made in response to conformity with the International Accounting Standard, computerization, generation of financial statements and for agency monitoring.
Great budgeting tips and a free accounting template.
Different authorities defined the subject of ‘Accounting’ in different ways. So it is difficult to define the subject through a single definition. Let us look at some of the prominent definitions: American Accounting Association defined...
In business, there are hundreds and thousands of transactions are taking place in a day. It becomes practically impossible to remember all those transactions. Unless you record them properly, it will be difficult for you to determine the source of income and expenditure.
Also known as the consistency concept, Consistency of Presentation is one of four fundamental assumptions of IAS 1 – along with going concern, fair presentation and accruals.
The goal of how to pass a CPA exam the first time is one to help reduce costs, stress, and time for those seeking careers as certified public accountants. Check out these tips and strategies to help that first test become your last one.
The best accounting firms in the Philippines, the "Big Five" auditing firms, are listed in this article. The top CPA firms and major accounting firms in the world have always been popular in the business world, not only here but globally, too....
The term "Costing" and "Cost Accounting" are used interchangeably. However, Costing refers to the technique and process of ascertaining costs. There are specified rules and principles used to determine the cost of products and services.
Cost Accounting is not an exact science like other branches of accounting but is an art which has developed through theories and accounting practices based on common sense and reasoning. These practices are changing with time.
As per companies Act, 1956 there no prescribed performa for the preparation of Profit and Loss Account. But the information and particulars are to be present in the Profit and Loss Account are laid down in Schedule VI Part II of the Act. Various...
1. RULES OF PROFESSIONAL CONDUCT Introduction: Members of association are required to observe proper standards of professional conduct and refrain from misconduct. Overseas members may follow the local ethics where the profession is controlled...
The auditor has to check the entries with its supporting documents to determine the accuracy and authenticity of the entries passed by verifying the vouchers, bills, and other supporting documents. This process of checking the evidence of the entries is called vouching.
The objectives of an audit may broadly be classified as Primary Objectives and Secondary objectives. The main purpose of the audit is to judge the reliability of the financial statements and the supporting accounting records.