Archive about 'Others'

Revision Notes: Depreciation Of Fixed Assets

Revision Notes on Depreciation Of Fixed Assets
 
Salient points:

1.  Understand WHAT is depreciation & REASONS for depreciation:

Depreciation is the permanent and continuing diminution in the quality, quantity or value of an asset.
Simply, depreciation is the loss of value due to fixed assets being consumed in order [...]

Ethnical Conducts And The Management & Financial Management Accountants

Extracted from the www: imanet.org are some guidelines pertaining to ethical dilemmas. These standards are in the areas of competence, confidentiality, integrity and objectivity for those practitioners of management accounting and financial management
By understanding the below guidelines, it is hoped that readers who aspire to be future accounting practitioners know that they have heavy task [...]

Revision Notes On Cost/volume/profit (CVP) relationships and break-even analysis.

Understand what is Cost/Volume/Profit Analysis and Breakeven Analysis

Cost-volume-profit (CVP) analysis studies the effects on future profit of changes in fixed costs, variable costs, volume, sales mix and selling price.

Remember what is Break-even (B/E) analysis

1.   In fact Break-even (B/E) analysis is one application of CVP. B/E analysis is useful for profit planning sales mix decisions, [...]

Revision Notes On Incomplete records

Understand What Is Incomplete Records:

Incomplete records – is the term used for any system of bookkeeping which does not use full double entry.

Generally applies to small business whether incorporated as Sole Proprietorship or Partnership. For them, generally a simple cash book to record receipts and payments may be enough instead of the proper accounting system [...]

Difference Between Financial Accounting And Management Accounting

This article seeks to explain the main difference between financial accounting and management accounting.

DIFFERENCE NO 1:

Financial accounting

Management accounting

Principal objectives

Stewardship of business for benefit of shareholders

Seek to improve economy, efficiency and effectiveness of operations

As we know Financial accounting mainly focus on periodic reporting of accounting information, as [...]

Careers In Accounting: A Survey Of The Top Ten Most Important Work Activities Performed by Accountant

Do you know that Accountants whether he or she is a Financial or Management Accountant can contribute a lot to the organization? There are many critical tasks that can be performed by the aspiring Accountants which are tabulated below:

Top Ten Most Important Work Activities Performed by Accountants

1.   Accounting systems and Financial Reporting

2.   Long-Term strategic planning

3.   Managing the [...]

Revision Notes: Financial Statements

Revision Notes on Financial Statements:
Salient points:

1.  Understand WHO reads the financial statement

        Equity Investor group, loan creditor group, employee group, analyst-adviser group, business contact group, government and public group

2. Understand the users’ PURPOSE of reading the financial statement

        Assess the stewardship of management on the use of the economic resources controlled by the enterprise.
    [...]

Revision Notes: Adjustments To Trial Balance

Revision Notes: Adjustments To Trial Balance
 
Salient Points:

1. Understand WHAT are adjusting entries:
 

Are journal entries made at end of month or year in order to match all expenses in the current month/year against the revenue associated to them;

 

Based on Matching concept

 

3. Understand HOW MANY GROUP of adjusting entries:

Deferrals

Accruals

3a. Deferrals:

Expenses deferrals/prepaid/prepayments like insurance, rental prepaid

Depreciation

Revenue Deferrals [...]

Humor

More Humor
Refer to numerous humors articles from humor section of my other accounting blog.

Humor: Heaven & Hell……..which to you choose?
While walking down the street one day a US senator is tragically hit by a truck and dies.
His soul arrives in heaven and is met by St. Peter at the entrance.
“Welcome to heaven,” says [...]

The Difference Between Financial Accounting and Management Accounting

This article is useful for those who would like to know a little more of the difference between Financial Accounting and Management Accounting.

Financial Accounting

Management Accounting

Prepared more for  external parties.

Prepared specifically for internal management uses.

Subjected to GAAP

No Need.

Mainly on historical events like reports on past events on how income was earned, financial [...]