Accounting Principle - QS Study
QS Study

Reducing Balance Method for Calculating Depreciation

Diminishing Balance Method or Reducing Balance Method for Calculating Depreciation Depreciation is a decrease in the price of an asset with the course of time,......

Straight Line Method for Calculating Depreciation

Straight Line Method or Fixed Installment Method for Calculating Depreciation Depreciation is a decrease in the price of an asset with the course of time,......

Which Factors are Determining the Amount of Depreciation?

Depreciation is a decrease in the price of an asset with the course of time, due in particular to wear and tear. All assets whose......

Reconciliation of Bank Accounts

A bank reconciliation is a process performed by a company to ensure that the company’s records (check register, general ledger account, balance sheet, etc.) are......

Terms used for Depreciation

Terms used for Depreciation: Depreciation is a decrease in the price of an asset with the course of time, due in particular to wear and......

The principles of effective Internal Control

17 principles of effective internal control are as follows: Demonstrate commitment to integrity and ethical values. Ensure that board exercises oversight responsibility. Establish structures, reporting......

Application of Computer in Accounts

The main application of a computer in accounting system are listed below: Speed — data entry onto the computer with its formatted screens and built-in......

Internal Control

Internal control is a process for assuring achievement of an organization’s objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations......

Lower of cost or market (LCM)

Lower of cost or market (LCM) is an accounting rule for valuing inventory and, under certain conditions, securities holdings. Under the lower of cost or......

Internal Causes of Depreciation

Depreciation is the measure of wearing out of a fixed asset. All fixed assets are expected to be less efficient as time goes on and......

External Causes of Depreciation

Depreciation is the measure of wearing out of a fixed asset. All fixed assets are expected to be less efficient as time goes on and......

Determining inventory quantities

In a merchandising company, inventory consists of many different items. These items have two common characteristics: (1) they are owned by the company and (2)......