What is an abnormal loss in accounting?
Abnormal loss is regarded as such a loss that has happened over and above the normal loss and is caused... View Article
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Which is the most liquid asset in accounting?
Cash in hand is considered the most liquid asset in accounting. Also read: What Is a Fixed Asset What Are... View Article
What are cash equivalents in accounting?
Cash equivalents are those items that can be easily converted into cash in a business. The example of cash equivalents... View Article
Is bank overdraft regarded as a current liability?
Yes, bank overdraft is considered as a current liability that is payable within the current accounting period. Also read: What... View Article
Is cash a current liability?
Cash is considered an asset as it increases the value of a business. Specifically, cash is considered a current asset.... View Article
What are examples of current liabilities?
Some of the examples of current liabilities are bills payable, short term debt, accounts payable and wages. Also read: What... View Article
What are 3 types of assets?
The three types of assets can be broadly classified as follows Based on convertibility (current assets and non current assets)... View Article
What are examples of liabilities and assets?
Examples of liabilities and assets are: Liabilities: Accounts payable Loans Deferred revenue Assets: Land Furniture Vehicle Also read: What Is... View Article
What is the purpose of marshalling assets?
The purpose of marshalling of assets and liabilities is to promote fair dealing of assets and liabilities. Also read: Marshalling... View Article
What is the order of liquidity in accounting?
Order of liquidity in accounting refers to the arrangement of assets and liabilities in a balance sheet based on their... View Article
What is the order of permanence in accounting?
Order of permanence in accounting is the order of arranging assets in order of their permanency, i.e. assets that are... View Article
What are the ways of marshalling the balance sheet?
The following are ways of marshalling the balance sheet: Order of permanence Order of liquidity Mixed order Also read: Marshalling... View Article
What is the marshalling of assets and liabilities?
Marshalling of assets and liabilities refers to the process of arranging the assets and liabilities in a balance sheet in... View Article
Name one of the rules from the golden rules of accounting
There are three golden rules of accounting and one among them is: debit the receiver, credit the giver. Also read:... View Article
What are the 7 steps of the accounting cycle?
The seven steps in the accounting cycle are as follows: Identifying and Analysing Business Transactions Posting Transactions in Journals Posting... View Article
What are the 4 phases of accounting?
The four phases of accounting are as follows: Recording transactions Classifying transactions Summarising Interpreting financial data Also read: Accounting MCQs... View Article
What type of account is a suspense account?
Depending on the situation, a suspense account can be any type of account ( i.e personal, real or nominal account).... View Article
What are the three types of inflation in the Economy?
The three main types of inflation in the economy are as follows: Demand-Pull Inflation Cost-Push Inflation Built-in Inflation Further Reading:... View Article
How to calculate GDP deflator?
The GDP deflator is calculated by dividing nominal GDP by real GDP and multiplying it by 100 Further Reading: What... View Article
What is the GDP deflator used for?
The GDP deflator is also known as implicit price deflator and is a measure of inflation. It is used to... View Article
