Depletion is accounted for natural resources or mineral assets. These include coal, oil, gold, iron, copper, timber etc. Also read: True and... View Article
The purpose of amortisation is to bring about a systematic reduction in the value of an intangible asset. The intangible assets include goodwill,... View Article
Depletion is applicable to the reduction in the value of natural resources such as oil, timber and minerals. Also read: Difference Between... View Article
Depreciation has an indirect effect on the cash flow of a business as it creates an impact on the company’s tax liabilities as depreciation... View Article
Depletion is used for measuring the systematic reduction in the value of mineral assets or natural resources while depreciation is used for... View Article
Depreciation impacts the cost of fixed assets (tangible assets) Amortisation impacts the cost of intangible assets Depletion impacts the cost... View Article
The difference between amortisation and depletion is that amortisation is applicable in the case of intangible assets while depletion is... View Article
Bank reconciliation helps in identifying any kind of unusual transactions that may have occurred due to fraud or any accounting errors. Also... View Article
The three methods of a bank reconciliation are: Comparing the statements Adjusting the balances Recording the reconciliation Also read:... View Article
The four steps in the bank reconciliation process is as follows: Compare the deposits Adjust the bank statements Adjust the cash account... View Article
The difference between trial balance and balance sheet is that trial balance is not a part of financial statements while the balance sheet is one... View Article
Yes, the trial balance contains expenses and expenses are recorded on the debit side. Also read: MCQs on Trial Balance Difference Between... View Article
Salaries and wages are expenses incurred by the business during an accounting period. Therefore, it has to be shown on the debit side of the... View Article
Accounts payable is a liability account and therefore should have a credit balance. The credit balance is indicative of the payment that needs to... View Article
A loan can be considered as a debit balance when the loan is given out by the business while it can be considered as a credit balance when it is... View Article
A trial balance is called a trial balance because it is the first step taken for the preparation of the final statements of a business firm. A... View Article
