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That statement is true. The cost concept is the basis for entering the exchange price into the accounting records.
That statement is true. The cost concept is the basis for entering the exchange price into the accounting records.
No, I don't maintain my records that well.
Straight from my text, the difference is that an accounting balance sheet omits significant assets and liabilities and the accounting balance sheet does not report all assets and liabilities at their market value (the accounting balance sheet records a book value; ie the dollar value paid for an item). With respect to which assets and liabilities that are omitted, I am not sure.
Bank reconciliation is the act of settling differences contained in a bank statement and the cash account in the books of the bank's customer. Once completed, the adjusted bank balance must prove to the adjusted book balance. When it does, it indicates that both records are correct. Journal entries are then prepared to update the records and to arrive at an ending balance in the cash account that agrees with the ending balance in the bank statement.
no
The Debit and Credit on a bank statement reflect the Bank's accounting records, not yours. So when you deposit money into your account, the bank owes you that money to you - it is a liability for them, therefore a credit entry. Similarly, if they charge you a bank fee, it reduces their liability to you, so they would Debit your account (on their books) and Credit an Income account.
How long to keep accounting records for business in the US
Accounting is important because it records the day to day financial activities of a business. It is basis for all financial statement and earnings reports of a company. Most companies today follow Generally Accepted Accounting Principles (GAAP).
The similarities between auditing and accounting is that both are concerned with keeping records of a business. The other similarity is that both ensure that the correct financial statement of a business are prepared.
Accounting records include ledgers, invoices, receipts, correspondence with tax agencies, etc.
Tally is a software program that is meant for accounting purposes. The software program can keep inventory records and display the trial balance details.