Category: Accounting
-
What are final accounts?
Final accounts are the accounts which are made at the end of the year. Theses are the accounts in the final accounts: Trading account Profit and Loss account Balance Sheet Trading account shows the Gross profit of a business Profit and loss Account shows the Net profit of a business Balance Sheet shows the financial…
-
Who has interest in the accounts of a business?
The following groups have interest in the accounts of a business: Shareholders Employees Government Competitors Directors Creditors
-
What is an asset?
Asset is something owned or controlled by a business There are 2 types of assets: Current assets Fixed assets Current assets get consumed in less than 1 year. For example raw materials, stock Fixed assets remain with the business for more than 1 year. For Example Building
-
What is the accounting equation?
Assets = Owner’s Capital + Liabilities
-
Accounting ratios
It is impossible to mention all the ratios which are used in accounting, so I am going to tell you about the most common ratios used in accounting: Gross profit ratio Net profit ratio Operating profit ratio Expense ratio Operating (cost) ratio Return on capital employed (ROI) Earnings per share Dividends per share Fixed assets…
-
What is accounting?
What is accounting Accounting is the art of recording, classifying and presenting data in a manner that it may be used by other people. Accounting comes after book keeping