Who is known as the father of Accountancy?
Q. Who is known as the father of Accountancy? Top Answer Solution:The father of accountancy is widely considered to be Luca Pacioli. Related Links
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What are the differences between the Straight Line and Diminishing Balance methods of charging Depreciation?
Q. What are the differences between the Straight Line and Diminishing Balance methods of charging Depreciation? Top Answer Solution: Straight line Method Diminishing Balance method 1. A fixed amount of depreciation is charged. [Cost of the machine is 5,000; depreciation…
What are compound Journal Entries?
Q. What are compound Journal Entries? Top Answer Solution:When a single transaction affects multiple accounts simultaneously and cannot be recorded using a simple journal entry with just one debit and one credit is known as compound Journal Entries. ExampleReceived commission…
What is Journal Entry?
Q. What is Journal Entry? Top Answer Solution:Journal entries are typically prepared by accountants or bookkeepers based on source documents like invoices, receipts, vouchers, and other relevant records.In accounting, journal entries are the primary records of financial transactions.Transactions are recorded…
What is Cash Book in Accounting?
Q. What is Cash Book in Accounting? Top Answer Solution:In accounting, a cash book is a financial journal that records all cash transactions of a business entity.The cash book is used to track and monitor the movement of cash, including…
What is a Cash Transaction?
Q. What is a Cash Transaction? Top Answer Solution:When a transaction is completed with the help of cash, coins or banknotes, as a medium of payment., then it is called a cash transaction. Related Links
What is Bookkeeping?
Q. What is Bookkeeping? Top Answer Solution:It is a process of recording transactions. Bookkeeping is the art of recording business transactions in a systematic order.Bookkeeping is essential for businesses to understand their financial activities clearly.It involves creating and maintaining various…
What are the different methods of calculating Depreciation?
Q. What are the different methods of calculating Depreciation? Top Answer Solution:There are various methods used to calculate depreciation. The most common methods are:(a) straight-line method depreciation(b) declining balance or reducing balance method depreciation(c) units of production method depreciationEach method…
What is depreciation?
Q. What is depreciation? Top Answer Solution:Depreciation is derived from the Latin word “depretium” which means a decrease in the value of fixed assets due to wear & tear, the passage of time, and obsolescence. ExampleThe cost of the machine…