Finance FAQs

Key Difference between Indian accounting standards and international accounting standards is..
In international accounting LIFO and extraordinary items are prohibited ...... More »
What are the items that are to be debited in accounting and what are the items that are to be credited in accounting?
This depends on the nature of the account and the thing you wish to achieve. For example, to increase cash you would debit the cash account, but if you wanted to decrease it, you would credit it. There are all sorts of accounts and they have diffe...... More »
Is an "account receivable" and "goodwill" real accounts in accounting?
Real accounts, i.e. Balance Sheet accounts are ongoing perpetual records and represent "real" items; cash, receivables, inventories, accounts payable, invested capital, etc., etc. Accounts receivable and goodwill therefore are both real accounts a...... More »
Why do users of accounting Information need accounting information?
External users of accounting information (especially investors) use accounting information like annual and quarterly reports to base their investing decisions on, and to compare different companies with one another. Internal users of accounti...... More »
What are the disadvantages of back-flush accounting?
One of the main disadvantages of the system is that it only works under some quite strict requirements. If these are not met, the system will become unbalanced and may be quite unusable, or a nightmare to maintain. Standard costs must be...... More »
What is fiduciary accounting?
Proper accounting for property that is entrusted to the fiduciary acting under the conditions set forth in a deed ...... More »
What does the abbreviation m mean in accounting?
It has come to mean one million in general usage, although it used to mean one thousand (and one million was abbreviated "MM") ...... More »
What does the abbreviation dr mean in accounting?
'Dr' means Debere in Latin stands for 'what comes in' or in simple words whatever assets the business owns or the expenses it has to pay comes under debit. While 'cr' means credere in Latin means 'what goes ou...... More »
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. ...... More »
What is an accounting transaction?
An accounting transaction is the exchange of request/response messages to perform accounting. Accounting can be performed in the form of accounting transactions that report on resource usage by a session. Accounting transaction can occur during a ...... More »