Company records it's financial transactions based on the accounting principles or methods they follow. Such specific methods are to be disclosed in company's annual report. There are two type of methods used in this accounting world to record financial transaction. Those are cash basis of accounting and accrual concept of accounting. Cash basis of accounting In cash basis … [Read more...] about Methods of Accounting – Cash and Accrual Concept of Accounting
Archives for June 2013
Difference between primary market and secondary market
If you want your business to expand by acquiring other businesses or by investing in new projects then you need funds. Funds for these requirements can either be arranged from your own source or investors can invest into your company in return of a portion of profit. To collect funds or money in return of profit, companies use to exchange their shares or stocks in … [Read more...] about Difference between primary market and secondary market
Financial Statements and It’s Components
Financial statement is prepared by the management and record all financial activities for the whole accounting year to state how well financially a company performed that year. This is the main part of the company’s annual report to reflect the financial effects of business transactions and events of the entity. A financial statement includes three most important … [Read more...] about Financial Statements and It’s Components