Inventory: Accounting Aspect
Accounting for Inventory Inventory accounting is the process of managing an organization’s inventory. Through this, the organization’s inventory information is accurately recorded, monitored and managed. Keeping accurate inventory records plays an important role in the business operations of an organization, as it helps in making the right production, sales and purchase decisions. A warehouse management […]
Inventory Storing System
Inventory storing system in more detail is a sensitive and precisely designed system, which makes business supply chain and storage operations simple and accurate. Through this important tasks like tracking, movement, monitoring and timely re-ordering of products are done. Here are its various aspects discussed: 1) Inventory Database Management:The central part of the inventory storage […]
Inventory
Definition of Inventory A large part of the total assets of a retail or wholesale business is inventory. Goods which are purchased for the purpose of sale and are available in salable condition on a particular date are called inventories. Inventory will be converted into cash by sale in less than one year. For this, […]
Business Operation Cycle
Operating Cycle The cycle through which the activities of the trading business revolve is called Operating Cycle. The stage of the operating cycle begins with the purchase of goods. the sale of the goods in arrears, and the process ends with the collection of cash from the debtor.Although the income assessment of a trading / […]
Trading Business
Definition of Trading/Merchandising Business Any business that earns profit by buying and selling goods is called Merchandising Business. Merchandising Business is also known as Trading Business.The activities of Merchandising Business organization can be represented by: Merchandising OperationsMerchandising Business organization conducts business activities called Merchandising Operations. There are basically four types of business organizations based on […]
Business Operations: Accounting Profession
Business Operations Understanding of business operations is important for accounting professionals because accounting refers to the keeping, measurement, and displaying of the financial data that mirrors the company’s activities. There are some reasons behind why this understanding is essential: Accurate Financial Reporting: Accountants need to know the process of conducting business and they have to […]
Chart of Accounts
Understanding the Chart of Accounts A Chart of Accounts (COA) is a part of accounting system. Which is providing a structured framework for organizing financial transactions. The COA is essential for all businesses and accounting professionals to ensure accurate reports and analysis. What is Chart of Accounts?The Chart of Accounts is a detailed directory of […]
Qualitative Characteristics of Accounting Information (SFAC No. 2)
(SFAC No. 2) Qualitative Characteristics of Accounting Information The accounting level of the conceptual framework is basically divided into two parts. The first part examines the qualities of accounting information to make it meaningful and useful to users. The second part discusses the introduction to the elements of financial reporting. Qualitative Characteristics of Accounting Information […]
Elements of Financial Statements (SFAC No. 6)
Elements of Financial Statements (SFAC No. 6) The second part of the conceptual framework of accounting is ten important elements of financial statements:1) Assets: The economic resources of a business that are used to earn profit are called assets. If it means that it will be available in the future, it is also called assets. […]
Objectives of Financial Reporting (SFAC No. 1)
SFAC No. 1 The first step in the conceptual framework of accounting describes the purpose of the report. Statement of Financial Accounting Concept shortly SFAC No. 1. Its original title was ‘’Objectives of Financial Reporting by Business enterprise’’. It describes the objective of financial reporting. The main purpose of accounting is to provide financial information, […]