Earlier topic on accruals concept and profit versus cash concept refers. Basically, a majority of small businesses use the cash method of accounting since it is simple to understand. The business records the earnings only when the cash is received and records all its expenses when the check or cash is issued. [ Payments are … Read more
Earlier articles describe both the accrual concept and profit versus cash concept. Append below is a simple test to understand the cash versus accrual accounting. Jim Co is a consulting company which have the following revenue and expenses for the month of October 2008 The company earned $10,000 but received only $8,000 in cash … Read more
Smart man + smart woman = romance Smart man + dumb woman = affair Dumb man + smart woman = marriage Dumb man + dumb woman = pregnancy
A mother and a baby camel were lazing around and suddenly the baby camel asked… Baby: Mother, mother may I ask you some questions? Mother: Sure! Why son is there something bothering you? Baby: Why do camels have humps? Mother: Well, son, we are desert animals, we need the humps to store water and we … Read more
BANK RECONCILIATION True False 1. When Bank column of a Cash Book shows a credit balance, it means overdraft or amount due to the bank X 2. When the bank statement shows a credit balance, it means balance per bank statement or amount due from bank X 3. When Bank column of a Cash Book … Read more
Answer true or false for the following bank reconciliation statement: 1. When Bank column of a Cash Book shows a credit balance, it means overdraft or amount due to the bank 2. When the bank statement shows a credit balance, it means balance per bank statement or amount due from bank 3. When Bank column … Read more