Conservatism allows profits to be recorded only when they are fully realised and under these guidelines, losses are provided for at the time it... View Article
Revenues are recognised only when they are fully realised, that is when a cash transaction is complete with a transaction or exchange. For... View Article
A deferred revenue account is a liability for a company as shown on the liability side of the balance sheet. It is a payment made by the... View Article
A revenue recognition account is when an entry is recorded only when the revenue is being paid and earned, and it is not related to when the cash... View Article
Applying IFRS 15, a business entity perceives income to represent the exchange of assured services and products to the client in a sum that... View Article
Prior to any revenue being recognised, the following norms must be met: Convincing proof of a course of action should exist. Delivery of... View Article
The five criteria for revenue recognition are: Identifying the contract with the business client. Identifying the performance obligation... View Article
A normal depreciation account is a debit in nature since it is an expenditure, while accumulated depreciation is of credit in nature as it is... View Article
Toward the end of each financial year, the board should audit the strategy for depreciation. Accordingly, the technique for devaluation can be... View Article
Tools can be depreciated along with the equipment. By following the normal depreciation techniques of subtracting the salvage value with the cost... View Article
Depreciation is calculated by using the following formula: Straight-line depreciation=cost of the asset- scrape / useful life of the asset.... View Article
The different types of depreciation are: Straight-line depreciation method. Written down value method. Units of production depreciation... View Article
The straight-line method of depreciation is the best method used to account for depreciation as it is easy to calculate and the most commonly... View Article
In any given account all debit and credit balances must be equal. To achieve this balance, adjusting entries are made where there is a shortage... View Article
A general ledger comprises all the combined balances of accounts. Whereas, a ledger contains the balance of each account. Also see: MCQs on... View Article
