Capital expenses or expenditure is recorded as a fixed asset rather than an expense, it is then charged to expense using the methods of... View Article
A promissory note is valid for 3 years from the date of its execution. Post this period it will become invalid. Also read: Bill of Exchange... View Article
A promissory note will be accepted in a court of law only when the signature of the borrower and witness is present. Also, in some cases, the... View Article
There is no requirement of notarising a promissory note. The only requirement is that it must be signed by the two parties. Also read: Bill... View Article
No, a bank guarantee is not a type of bill of exchange. It is a guarantee that assures that the liabilities of a debtor are going to be paid by... View Article
A letter of credit is not a bill of exchange, it is different from the bill of exchange as a bill of exchange is an instrument of payment while... View Article
The importance of computers in accounting is as follows: Faster computing: A computer has the ability to calculate faster than a human being.... View Article
Opening capital can be determined by preparing the statement of affairs at the beginning of the accounting period. This can be done by preparing... View Article
The missing figures on a balance sheet can be determined by the following formula Assets = Liabilities + Owner’s equity Review each and... View Article
Profit is calculated from the fluctuations in the capital at the starting and end of the year and by adding the drawings and subtracting the... View Article
An increase in the closing inventory leads to a reduction in the value of the cost of goods sold, which results in an increase in the gross... View Article