Accounting Section 3 The statement of changes in equity shows how equity changed over a specific period. The principle that requires revenue to be recognized when it is earned and realizable is the Revenue Recognition Principle. Assets that are expected to be converted to cash or used up within one year are classified as Current […]
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Accounting Section 2 Acid Test Ratio is calculated as Liquid Assets/Current Liabilities. Deferred cost is an Asset. A Work Sheet is a combination of Profit and Loss Account and Balance Sheet items. Banks, for the preparation of financial statements, are governed under Banking Companies Ordinance, 1962. Return on investment is computed as Profit x 100/Investment.
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Accounting Section 1 Double entry book-keeping was introduced by Lucas Pacioli. Funds Flow Statement and sources and application statement are synonymous. Depreciation in spirit is similar to Depletion. Balance Sheet is always prepared as on a specified date. In Insurance, separate Profit and Loss Accounts are prepared for different types of insurance. The number of
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