What is the definition of accounting? The systematic recording, reporting, and analysis of financial transactions of a business.

The person in charge of accounting is known as an accountant What are the different branches of accounting?

There are five types of branch of accounting 1. Financial Accounting 2. Management Accounting 3. Cost Account 4 Human Resource Accounting 5 Social Responsibility Accounting What is Bank Reconciliation Statement?

A Bank reconciliation statements are prepared if balance of bank account as shown in cashbook differs from balance as shown in passbook. This statement shows the reasons or transactions because of which balances as shown in cashbook and passbook are not tallying with each other. Why accounting standards needed? Accounting standards are necessary to promote high quality financial reporting. The fundamental role of accounting is to communicate economic information about businesses and other organization to various stakeholders including government, investors, shareholders, suppliers, lenders, customers, and the public. These stakeholders use such information to take decisions and to assess the stewardship of people appointed to manage such organizations. If this information were not of a high quality standard, then the stakeholders would be unable to take effective decisions that will benefit them. For example, if a financial report were manipulated to show higher profits,

investors would hold on to their shares with the belief that the company is doing well. What are the differences between accounting and auditing?

Accounting records the events. Auditing is a process that checks to see whether the events occurred and it is properly recorded. What is depreciation and how many types are there. Please give details?

Depreciation means reducing/lowering value of an asset because of its use. Like machines/vehicles gets rusty/slow because of consistent use. What is accrual accounting?

Accrual Accounting refers to the recording of financial transactions once an economic event has happened and it is not based on the movement of cash. What is the relationship between cost accounting financial accounting and managerial accounting? Financial accounting relates to the information presented based on past events and records. Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends. Financial accounting relates to the information presented based on past events and records. Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends.

What is cash flow and fund flow?

Cash flow and funds flow: cash flow means direct entry of cash in your business and exit of the same funds flow means entry of funds (cash funds or non cash funds) and their exit non cash funds may mean rise in current assets or fall in current liabilities which was not due to any cash movement What is accounting ethics?

Accounting ethics is primarily a field of applied ethics, the study of moral values and judgments as they apply to accountancy. It is an example of professional ethics. What is fiduciary accounting? Proper accounting for property that is entrusted to the fiduciary acting under the conditions set forth in a deed What are the golden rules of accounting?

PersonalDebit the receiver Credit the Giver RealDebit what comes in Credit what goes out NominalDebit all expenses and losses Credit all income and gains

What is an adjusting journal entry?

Adjusting entries are those entries that passed to rectify an error or wrong entry already made some accounting soft wares have disabled edit function in the accounts, so the only way to undo the mistake is to pass a correction entry or adjusting entry.