Everything you need to know about the types of budgets. Budget is a financial statement that provides detailed information about the revenue and expenditure of a particular year. However, there is no single rule or pro forma available to prepare budget, as in case of balance sheet and profit and loss account. You should note that different organizations follow different [...]
The following points highlight the four main concepts of accounting theory. The concepts are: 1. The Concept of Transaction 2. Accounting Period Concept 3. Realisation Concept 4. Concept of Full Disclosure. 1. The Concept of Transaction: The major concept in accounting theory that appears in the same logical sequence is the concept of transaction. In its simplest form, transaction can [...]
In this article we will discuss about the classification and computation of ratios. Classification of Ratios: Ratios may be classified from various stand points and they are: (A) Classification by Statements: This classification is based on those statements from which information’s are obtained for calculating ratios since accounting information’s are obtained mostly from two statements i.e. Balance Sheet and Profit [...]