1.Fixed AssetsThose assets which are acquired and held permanently for a long time in the business are fixed assets.2.Current AssetsThose assets which can not be put to constant uses and intended for resale or which in the ordinary course of business will be converted into other assets are current assets.3.Intangible AssetsIntangible assets are those assets whih can not be touched,seen and have no volume but have value.4.Wasting AssetsThose assets which are depceted gradually or exhausted in the process of earning income are known as wasting a...
Sunday, 29 November 2009
Sunday, 22 November 2009
Items Included In The Balance Sheet
Posted on 21:37 by Unknown
Items Included In The Assets Side Of Balance Sheet1. Fixed Assets2. Current Assets3. Wasting Assets4. Intangible Assets5. Investments6. Fictitious AssetsItems Include In The Liabilities Side Of Balance Sheet1. Fixed Liabilities2. Long Term Liabilities3. Current Liabilities4. Contingent Liabilit...
Concept And Meaning Of Balance Sheet
Posted on 21:29 by Unknown
Balance Sheet is a tabular statement of balances carried forward after closing the books of account kept according to principles of accounting.Balance sheet is a statement prepared with a view to measure the financial position of a business on a certain fixed date.Balance sheet indicates the financial position of a concern by its assets on a given date and its liabilities on that date.Excess of assets over liabilities represents capital or net worth or shareholders' fund and is indicative of the financial soundness of a compa...
Thursday, 5 November 2009
Differences Between Cost Accounting And Management Accounting
Posted on 02:48 by Unknown
Main distinction between Cost Accounting and Management Accounting are as follows.1. Cost accounting deals with ascertainment , allocation , apportionment accounting aspect of costs.Management accounting deals with the effect and impact of costs on the business.2. Cost accounting provides a base for management accounting whereas management accounting is derived from cost accounting and financial accounting.3. Cost accounting does not include financial accounting , tax planning and tax accounting. Management accounting includes financial and cost...
Differences Between Financial Accounting And Management Accounting
Posted on 02:07 by Unknown
Main distinctions between Financial and Management Accounting.1. The main objective of financial accounting is to measure business income and communication of business information to the various categories of persons like management , creditors , suppliers , bankers , investors etc.whereas the main objective of management accounting is to help the internal management.2. The financial accounting deals with all the activities of the business , assesses results of the business as a whole and reveals the overall performance and position of the enterprise...
Sunday, 1 November 2009
Limitations Of Management Accounting
Posted on 21:37 by Unknown
Though management accounting is helpful tool to the management as it provides information for planning, controlling and decision making, still its effectiveness is limited by a number of reasons. Some of the limitations of management accounting are as follows:1. Based On Accounting InformationManagement accounting is based on data and information provided by financial accounting and cost accounting. As such the correctness and effectiveness of managerial decisions will depend upon the quality of data provided by cost and financial accounts. So,...
Merits Of Management Accounting
Posted on 21:18 by Unknown
Following advantages from the management accounting system may enjoy by a business:1. Management accounting analyze and interpret systematically the information collected from within and outside the business and communicate the result to the management. This will help in implementing managerial policy decision effectively.2. Management accounting helps in comparing actual performance with the budgeted standard and reporting management by deviations of corrections.3. All the business activities are planned well ahead base on the accounting information...
Scope Of Management Accounting
Posted on 20:42 by Unknown
The scope or field of management accounting is very wide and broad based and it includes a variety of aspects of business operations. The main aim of management accounting is to help management in its functions of planning, directing, controlling and areas of specialization included within the admit of management accounting. The scope of management accounting can be studied as follows:1. Financial AccountingFinancial accounting forms the basis for analysis and interpretation for furnishing meaningful data to the management. The control aspect is...
Functions Of Management Accounting
Posted on 03:04 by Unknown
Key functions of management accounting1. Forecasting and planning.2. Co-ordinating.3. Organising.4. Controlling.5. Financial Analysis and interpretation.6. communications.7. Motivating.8.Decision maki...
Role Of Management Accounting
Posted on 02:57 by Unknown
The main objectives or roles of management accounting are as follows.1. Assistance in planning and formulation of future policies.2. Management accounting helps in controlling performance.3. Management accounting helps in interpretation of financial information.4. Management accounting helps in coordinating operations.5. Management accounting helps in organising.6. Management accounting helps in evaluating the efficiency and effectiveness of policies.7. Management accounting helps in motivating employees.8. Management accounting helps in the solution...
Concept And Meaning Of Management Accounting
Posted on 02:33 by Unknown
Management accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and the day to day operation of an undertaking.Management accounting relates to the use of accounting data collected by financial and cost accounting for the purpose of policy formulation, planning , control and decision-making by the top management. Management accounting uses all techniques of financial and cost accounting to help management to make decision in a scientific mann...
Differences Between Financial Accounting And Cost Accounting
Posted on 02:08 by Unknown
The main differences between financial accounting and cost accounting are given as under.1.Financial accounting provides information about the business in general way.Financial accounting tells about the profit and loss and financial position of the business.Cost accounting provides information to the management for proper planning,control and decision making.2. Financial accounting classifies,records and analyses the transactions in subjective manner or according to the nature of expenses.Cost accounting records the expenditure in an objective...
Concept And Meaning Of Cost Accounting
Posted on 01:51 by Unknown
Cost accounting has been developed due to limitations of financial accounting. Financial accounting is concerned with record keeping directed towards the preparation of Profit and Loss Account and Balance Sheet. It provides information regarding the profit and loss which is helpful for the management to control the major functions of business like finance , administration , production and distribution.But details regarding operating efficiency to these divisions are lacking in financial accounting.Cost accountancy is the application of costing...
Concept And Meaning Of Financial Accounting
Posted on 01:34 by Unknown
Financial accounting is a branch of accounting which is concerned with the preparation of financial statements for decision makers. Financial accounting is used to prepare accounting information for internal and external users. Therefore financial accounting may be defined as the process of summarizing financial data and publishing annual reports for the benefit of the people inside and outside the organizati...
Subscribe to:
Posts (Atom)