The Accounting Equation (Assets, Liabilities & Equity)

The Accounting Equation (Assets, Liabilities & Equity)

From the multi-national, huge enterprise down to the corner barbershop, a company financial position is affected by every single business transaction. The assets, liabilities and equity determine the economic status of a business. The accounting equation, known as the basic accounting equation, explains the relationship between these three elements. For sole proprietorship, the accounting equation […]

The Accounting Equation (Assets, Liabilities & Equity)

Tax Avoidance and Tax Evasion

Most entrepreneurs do not fancy paying taxes although paying taxes is the mandatory responsibility of all income maker under the legislation in Singapore. “Tax avoidance” are usually used in a way “tax evasion” does in the business circle (especially by those does not have tax background), they are of highly distinctive in nature. If you […]

The Accounting Equation (Assets, Liabilities & Equity)

Accounting – Revaluation of Fixed Assets

Plant, property, and equipment (PPE) are also known as fixed assets and are used in the production process or supply of goods and services, administrative purposes, or any other activities in the business. The Singapore Financial Reporting Standards, FRS 16 – Property, Plant and Equipment allows business the accounts preparer to measure the value of […]

The Accounting Equation (Assets, Liabilities & Equity)

Accounting Principles – Going On Concern Concept

The going concern concept states that a business will continue with its operations for the foreseeable future. The concept assumes that the company won’t be forced to discontinue its operations or liquidate due to any reason. A perfect example of implementation of such concept in accounting is the calculation of depreciation based on the anticipated economic […]