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Frequently Asked Questions
What are the Different Types of Accounting?
Financial accounting-In this type of accounting, accountants create reports based on the business transactions that take place over a time period in the organization. Financial accounting works for both the public and private sectors.
Administrative accounting-This type of accounting focuses on the administrative aspects of the company. It is used for forecasting and planning the actions and resources that can be used to fulfil the company’s objectives.
What is working Liquidity?
It refers to the capital that is used in day-to-day trading. It is calculated by subtracting current liabilities from current assets. Working capital helps in calculating the resources that a company can count on to carry out its operations for the short term.
What do you mean by material facts in accounting?
Material facts refer to the documents such as vouchers, bills, debit and credit notes, receipts that serve as the base for every account book. These are the documents that help in preparing the account book.
Which is better cash basis accounting or accrual accounting?
If you want to manage your books in an efficient manner, then you can use either cash-basis or accrual accounting. Cash basis accounting is a simpler accounting system as compared to accrual accounting. With cash basis accounting, you will have to record transactions only when you physically make or receive any payment.
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