Finance General Faqs

What are the elements of the accounting equation?
The elements of accounting are Assets, Liabilities, and Owner Equities. The way to remember this would be through the acronym ALOE The accounting equation is Assets = Liabilities + Owners' Equities ...... More »
In which ways is math used in accounting
Primarily only addition, subtraction, multiplication, and division are used in accounting as follows: Addition: Summing accounts for inclusion in financial statements (i.e. many different cash accounts are summed to equal "cash" in balanc...... More »
What are the limitations of accounting ratios?
Ratios place significant emphasis on short-term results. Ratios such as EPS and the ROCE are subject to accounting conventions that might deter businesses pursuing policies that are in their long-term interest. ...... More »
What qualification do you need to become an accounting professional?
As an accounting professional in the state of Maryland, the requirements are 150 credit hours in order to sit for the CPA examination. The exam is given in 4 parts and all 4 parts can be taken separately. Once you have passed all 4 for parts of th...... More »
Definition of push down accounting
A method of accounting wherein the financial report of the subsidiary reflects the parents cost incurred in acquiring the sub. ...... More »
What are cost accounting and its applications?
Cost Accounting is a method by which an accountant can determine the cost of production of a "widget". This is used in accurate reporting of Cost of Goods Sold and consequently the Gross Income of a company. A Cost Accountant will follow the "widg...... More »
What is meant by public accounting?
Public Accounting is best known for providing audits, CPAs who work in public accounting review company financial records for accuracy and accountability. ...... More »
Define Tally Accounting
Tally is a financial accounting software package designed by Tally Solutions mainly for small businesses and shops. They claim on their website that Tally is used by over 2 million users, in over 90 countries. Tally 9.0 is the latest version to da...... More »
Why are accounting firms needed?
Accounting firms come in handy for many reasons. Some of the smaller ones: Businesses will use them to calculate payroll and the accounting firm will calculate the amount of taxes taken out. Company income tax returns, accounting firms w...... More »
Why does the accounting equation have to balance?
Due to its design, it was intended as check that your records were correct - think of it as a barometer of sorts. If you look at your general ledger or trial balance and the assets do not equal the liabilities plus equity (the debits don't equ...... More »