Businesses are involved in thousands of business activities every single day. In order to record this financial data so that eventually we can produce the financial statements, we use the accounting equation and its elements to record business activi... Read more
Definition Contra accounts are special accounts that are established to decrease the balance in another account indirectly. They preserve the identity of the primary account and provide an account to debit or credit when one does not exist. A contra... Read more
Income is the main indicator for assessing the economic activity of an entrepreneur (individual or legal entity). Making a profit is the goal of any business. Though gross and net both can describe income, they mean two completely different things. I... Read more
Every business owner, whether a beginner entrepreneur or an already experienced business owner, is faced with situations that arise for the first time. At the initial stage of entrepreneurial activity, these are questions of creating a business, keep... Read more
The goal of large or small businesses is to make a profit. It is such aspirations that become the driving force of capitalism. For any businessman or individual entrepreneur, the benefit is essential. This result is the reason for opening any busines... Read more
Accounting in one form or another had existed for a very long time and appeared around the time when people began to engage in trade. Accounting is an integral part of entrepreneurial activity. It is essential that accounting is maintained accurately... Read more
Unearned revenue represents income received by the organization in the reporting period but related to future reporting periods. In the composition of unearned revenue is a receipt for goods or services, the delivery of which will last a long time or... Read more
What is a cash disbursement journal?This type of journal is used to record funds coming out of your company before they are included in the general ledger. However, not every payment can be called disbursement. This term is applied to payments made w... Read more
What are adjusting entries in accounting?It’s easy to see when adjusting entries are made. They’re necessary when you want to make changes in journal entries. They are especially important if we’re talking about already recorded numbers in specific a... Read more
What are sales journals in accounting?Another widespread accounting tool is called a sales journal. The company needs this journal to track all credit sales made. After a transaction is made, all the details and results should be filled out in this j... Read more
