Accounting Principle

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…

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…

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

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

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…

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…

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)…

Last in, first out method (LIFO) method is suitable when prices are rising because material will be issued from the latest consignment at a price…

Companies must use First in, first out (FIFO) method for inventory if they are selling perishable goods such as food, which expires after a certain…