Finance General Faqs

Contrast bookkeeping and accounting
Bookkeeping is the maintenance of the company's financial records. Accounting is the presentation and interpretation of those records to be used by management for decision making, improvement, and planning. ...... More »
Why Accounting is important in business?
Because a business is all about money and management of money can only be done through accounting and not otherwise ...... More »
What do you mean by material facts in accounting?
Material facts are documents pertaining to the historical events of the facts being justified ...... More »
What is the definition of manual accounting?
It is recording accounting transaction without the use of computer. ...... More »
How does accounting contribute to the community?
Accounting helps communities in many ways. Accountants help the communities manage their money and they take care of their taxes yearly. They also manage their money, help set a budget for them and teach them to manage their money wisely. ...... More »
What is the definition of offset accounting?
The one reduces the gross amount of another account to derive a net balance. Accumulated depreciation, which is a contra account to fixed assets to obtain book value, is an example of an offset account. ...... More »
Accounting for VC money in financials
It depends on the form in which the money comes in. If it was invested as equity (either Common or Preferred Stock), it shows up on the balance sheet as Paid in Capital. If it came in as debt (such as bridge loan, secured note, etc.) it shows up a...... More »
What is the relationship between bookkeeping and accounting?
Bookkeepers perform a critical function for the firms and organizations they serve. Regularly challenged to maintain precise and accurate records, bookkeepers produce the vital reports that keep management up to date on the financial condition of ...... More »
Explain the concept of responsibility accounting
They are Collection, summarization, and reporting of financial information about various decision centers (responsibility centers) throughout an organization; called activity accounting or profitability accounting. It traces costs, revenues, or pr...... More »
What is a difference between public and private accounting?
Public accounting includes any accounting work that a company performs for another company. Examples would be audits, tax compliance, consulting, etc. The "Big 4" (KPMG, Deloitte & Touch�, Price Waterhouse Coopers, and Ernst & Young) are t...... More »