planning-your-career-path-as-an-aspiring-accountant

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 […]

planning-your-career-path-as-an-aspiring-accountant

Accounting for Goodwill

Goodwill on your company’s balance sheet is the value that your company gained after acquiring another. If the acquiring business pays for the target company amount which is more than the target’s book value, the excess amount accounts for the business’s goodwill. If the acquiring business pays less than the target’s book value, then, it […]

planning-your-career-path-as-an-aspiring-accountant

Accounting – How to Write Down Inventory

When writing down inventory, you should charge a particular amount of your business inventory assets to expense in the current accounting period. This process is necessary when the products are lost, or their value has decreased. Where necessary, you should write down the inventory before you prepare your business financial statement for the changes made […]

planning-your-career-path-as-an-aspiring-accountant

Accounting – What are Correcting Entries?

Accountants might make errors during their day-to-day tasks. Whenever these errors are spotted, they should be corrected immediately to avoid processing the wrong data and creating misleading financial statements. These corrections can be made using the correcting entries. Keep in mind that correcting entry is not an adjusting entry. An adjusting entry is required to […]