A peculiar thing for businesses is the purchase of goods or services that aid the day-to-day running of the enterprise. The cost incurred in the process is referred to as “expenses,” which may be related to production or regular business operations. As a business owner, it is essential to keep a record of all expenses, …
The word “accounting” refers to a business language used in communicating the financial information of a company to its stakeholders as regards the enterprise’s performance, profitability, and position, which then assists in rational decision-making. The financial information or statements of a business organization are based on various concepts and conventions that are categorized as “Accounting …
Difference Between Accounting Concepts And Conventions Read More »
The city of Lagos has always been known as a business hub, with numerous companies and organizations having their headquarters in the city. The accounting profession is not any different, as there are notable firms worthy of mention in the state. It is undoubtedly a business environment, housing professionals who work for the government, private, …
Bookkeeping is usually associated with the record of money in and money out. However, bookkeeping also contributes to the evaluation of businesses to determine how far they have come, where they are, and also to plan for the future. Meanwhile, it is common for business owners to experience lots of mess each day, which …
The purpose of this post is to outline the various types of transactions in accounting. However, there’s a need to make some things clear beforehand. Here goes: Transactions, which are quite important in businesses, are events that take place consistently on a daily basis, and so they are regarded as the subject matters of accounting. …
Accounting is definitely one of the most respected careers in Nigeria, considering the criteria involved in getting the professional tag as an accountant. Becoming a certified accountant is not an unachievable task, as there are recognized accounting bodies in Nigeria that conduct examinations, give licenses, and induct qualified candidates. Without a doubt, there is no …
Window dressing in accounting is described as an intentional way of manipulating the financial statements of a company in order to make them appear more appealing than they actually are. Companies apply window dressing when there are a large number of shareholders and investors who have little day-to-day interaction with the business but are needed …
It is necessary to have business transactions recorded for reference purposes, and at every financial transaction of a company, a paper trail is generated. In accounting, the paper trail generated is called a “source document,” and it is the first document that exists in connection to transactions. Source documents in accounting serve as evidence …
Rules are basic guides that are universally applicable and followed by all for the smooth execution of business activities. Every rule is important as it forms the strength of a business or an event, dictating how things should be done. Just as there are rules for every process, there are golden rules of accounting too. …
In simple words, purchase returns which is also called “return outwards” is a situation whereby a buyer sends goods back to the supplier for various reasons which may be charged or free if the company offers free returns within a certain number of days of purchase. However, having numerous products returned to the supplier …
