Accounting Question - QS Study

What are Current Liabilities?

In the liabilities and owners’ equity section of the balance sheet, the first grouping is current liabilities. Current liabilities are obligations that the company is......

What is Current Assets?

Current assets are assets that a company expects to convert to cash or use up within one year or its operating cycle, whichever is longer.......

What is a Worksheet?

A worksheet is a multiple-column form used in the adjustment process and in preparing financial statements. As its name suggests, the worksheet is a working......

Importance of Adjusting Entries

Adjusting entries are required for the following reasons: Some events are not journalized on a daily basis. For example, the earning of salary by the......

Why adjusting entries are needed?

Basically the adjusting entries ensure that revenues are recorded in the period in which they are earned and that expenses are recognized in the period......

What is Fiscal Year?

Both small and large companies prepare financial statements periodically in order to assess their financial condition and results of operations. Accounting time periods are generally......

Locating and Protecting Errors of Trial Balance

Locating and Protecting Errors of Trial Balance Errors in trial balance generally result from mathematical mistakes, incorrect posting, or simply transcribing data incorrectly. To locate,......

State the limitations of a Trial Balance

Limitations of a Trial Balance A trial balance has some disadvantages. Such of them are as follows: It does not prove that all transactions have......

What is trial balance?

Trial balance is a list of accounts and their balances at a given time. Examples: Trial balances are of various types, such as: Initial trial......

What do you mean by Special journal?

Special journal is a journal that is used to record similar types of transactions. Special journals are of various types, such as: Sales journal, Purchase......

What is subsidiary ledger?

Subsidiary ledger is a group of accounts with a common characteristic. Subsidiary ledgers are of various types, such as: Accounts receivable subsidiary ledger, Accounts payable......

What is posting?

The procedure of transferring journal entries to the ledger accounts is called Posting. Importance of Posting In the recording process, posting accumulates the effect of......