Financial Accounting Notes (MBA, BBA, B.Com, Management) for mba, bba, b.com and other management and business studies students. Financial accounting is a focused branch of accounting that retains path of a firm's financial transactions. Using standardized rules, the transactions are recorded, summarized, and presented in a financial report or else financial statement such as an income statement or a balance sheet. Businesses matter financial statements on a repetitive schedule. The statements are considered external because they are given to people outdoor of the company, with the prime recipients being owners/stockholders, as well as certain investors. If a company's stock is publicly traded, however, its financial statements (and other financial reporting’s) incline to be extensively spread, and information will likely reach secondary receivers such as competitors, customers, employees, labor organizations, and investment analysts.
Separate Entity Concept forms the base of the accounting principles. It means that for accounting ‘The Business’ is treated independently from The Owners”. This means that even though anything owned by the business belongs to the owners of the business and anything owed by the business is payable by... read more
October 04, 2021
Variable costing is proportionate to the production volume, where it varies with the volume of production. When level of production increases the variable cost also increases and so if level of production decreases then variable cost also decreases. Variable cost includes; Direct Materials Direct Labor ... read more
December 05, 2019
Inventory management Inventory management is the management of inventory and stock. As an element of supply chain management, inventory management includes aspects such as controlling and overseeing ordering inventory, storage of inventory, and controlling the amount of product for sale. Inventory management is all a... read more
December 05, 2019
Inventory “Inventory is an accounting term that refers to goods that are in various stages of being made ready for sale” Inventory includes goods prepared for sale as well as any physical resources used in the production of the finished products. Inventory must be reported as a current asset or s... read more
October 13, 2019
Voucher A voucher is small printed piece of paper that entitles the holder to a discount, or that may be exchanged for goods or services. Types of Voucher Following are the types of voucher; Debt Cash Voucher When bank receive any amount from any customer then debt cash voucher is used means tha... read more
December 10, 2018
Recording, Classification and Reporting of Property Plant and Equipment / Fixed Assets is governed by IAS 16 – Property Plant and Equipment IAS 16, Property Plant and Equipment This standard covers all aspects of accounting for property, plant and equipment. This represents the bulk of items which are &ldqu... read more
January 06, 2018
If it is imaginable to develop an accounting theory (Hendriksen and McDonald) then how do we approach its development? Research in this area has centered on traditional approaches, regulatory approaches and what has come to be observed as new approaches. Following are the approachesTraditional approachesTraditional appro... read more
May 29, 2017
Following procedure is followed for formation of companies:In the first stage the availability of name is checked from SECP. SECP ensures that two companies with same name do not get registered.In the second stage Memorandum and Articles of Association are prepared and signed by the sponsors (first shareholders) of th... read more
May 10, 2017
There are three major types of companies: Companies Limited by Shares Companies Limited by Guarantee Unlimited Companies Section 15 of the Companies Ordinance 1984 sates: Any three or more persons associated for any legal purpose may, by subscribing their names to a memorandum of association and complying with the re... read more
May 09, 2017
Companies Limited by Shares “Company Limited by Shares" is a company in which the liability of the members (shareholder) of the company is limited to the amount of share capital that they have contributed. This means that the owners will only suffer a loss to the extent of the amount contributed as capita... read more
May 07, 2017
There are two main types of business entities i.e: Profit Oriented or Commercial entities and Non Profit Oriented entities.Profit Oriented / Commercial Entities Profit oriented or commercial entities are those entities where the key aim of carrying out business is to earn profit for the owners of the business. Profit or... read more
May 06, 2017
According to both Hendriksen (1977) and McDonald (1972) the development of an accounting theory should be possible. McDonald argues that a theory must have three elements:Encoding of phenomena to symbolic representationManipulation or combination according to rulesTranslation back to real-world phenomena.... read more
January 22, 2017
Financial AccountingProblem 3.5 Campbell Crop Dusting CAMBELL CROP - DUSTING GENERAL JOURNAL Date Account Title & Explanation Debit Credit 01/June/2001 Cash 60000 ... read more
January 20, 2017