This blog is dedicated to all students who are taking Accountancy. We started this blog to share knowledge, giving some tips and guides on different Accounting topics and most of all to help you, students, to make Accounting as an adventure to enjoy!
WHAT IS sole proprietorship? Sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. A sole proprietorship can operate under the name of its owner or it can do business under a fictitious name, such as Nancy's Nail Salon. The fictitious name is simply a trade name--it does not create a legal entity separate from the sole proprietor owner. Because a sole proprietorship is indistinguishable from its owner, sole proprietorship taxation is quite simple. The income earned by a sole proprietorship is income earned by its owner. A sole proprietor reports the sole proprietorship income and/or losses and expenses by filling out and filing a Schedule C, along with the standard Form 1040. Your profits and losses are first record...
What are the basic Accounting terminologies? This blog post is very important especially to the fresh accounting students. This may help them in order to discover first on what are the basic in accounting, because in accounting process a strong foundation is important . Accounting Equation - assets = liabilities + equity Accounts Payable - money owed to creditors, vendors, etc. Accounts Receivable - money owed to a business, i.e. credit sales Accrual Accounting - a method in which income is recorded when it is earned and expenses are recorded when they are incurred, all independent of cash flow Accruals - a list of expenses that have been incurred and expensed, but not paid or a list of sales that have been completed, but not yet billed Amortization - gradual reduction of amounts in an account over time, either assets or liabilities Asse...
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