Accounting

A debtor is a member of financial accounting that continues the flow of transaction of account payable. He/She runs the turnover of the company’s liabilities so that he/she can remember to pay the entire money which has been taken from the creditors such as banks or other financial statements, vendors. Who is the Debtor? A […]

Under accounting terms, Creditors are a source of getting a loan in many ways such as in the form of money, credit card, goods or services, bonds, or shares. They act as a financial service provider who can be as an individual (family or friends), organization (other corporate or Public company), government (Bank or other

An auditor is a person who is appointed for another firm especially for analyzing the financial statements of the firm according to the rules of Generally Accepted Accounting Principles (GAAP). An auditor is like a detector who performs for the other firm for executing an audit. An auditor performs multiple tasks when they are called

Profitability is a term that needs to be found through the operating profit margin ratio to know how much operating profits businesses are getting. By using the ratio formula, a company’s operating profit margin is found to describe a stage of profitability of a business. You can define it with an easy term – an

A small amount of profit is taken out from a company’s earnings for allotting it to shareholders, that distributive part is known as dividend. It is a shared part of earnings but sometimes it is not shared due to facing more losses or more debts by the company. A shareholder can get dividends in any

The Expanded accounting equation plays a similar role in varieties of business like a partnership, sole-proprietorship, a public or private corporation. Each business has different laws, rules but similar methods to prepare and improve accounting records. Basically, the Fundamental accounting equation is used to arrange and manage the owner’s equity capital but there is another

With an easy and single format, business owners can make their income statement to record expenses or costs and revenue in a single column. Expenses or goods cost recorded in a single line after breakable into different categories that do not require two columns to prepare a profit and loss statement. If you face difficulties

A receipt that defines the total business small expenses incurred in a whole financial year, is known as a petty cash voucher. A Petty Cash Voucher contains each detail of a single payment transaction with the company’s name and address, logo, date and time, amount, fax number, receiver name, and his/her signature, prepare name, approver

An account receivable turnover ratio defines the ratio in the percentage of how much cash has been received on selling a company’s goods. This role is performed by the accounting team in an organization and this process is known as the AR process which is a bit tough to deal with those customers who have

The word outstanding indicates due and salary indicates expense, then it becomes a liability for the firm after both words are combined. An Outstanding salary is a salary that is yet to be paid, that has to be paid. At the end of the financial year, it is recorded in two statements account first is

AICPA and PCAOB, both have a major involvement in setting the accounting and auditing standards of the United States to improve the auditing terms for trading sectors. Both are different organizations that have different sets of policies and procedures to understand audit reports to the public corporations and brokers. Corporate failures in making audit reports

Standard cost is an assumed cost that is decided by the company before starting the production process so that they can get an idea of the product-making budget. Standard cost is not a fixed cost that cannot be said to be a real cost, it is just an expected cost. During the production part, the