Accountancy involves the preparation of the final accounts to show the result of the business at the end of the financial period. The man who is entrusted with this work is called an accountant. His work is not only to supervise the work of the book-keepers but also to analyses, review and draw conclusions from the final accounts. His work is of a specialized nature and he must be well versed with the principles of accountancy.
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- Fiscal year
Fiscal year is the 12-month period that a company adopts for financial accounting purposes.
- Cost method
Cost method is an accounting method in which the investment in common stock is recorded at cost, and revenues are recognized only when cash dividends are received.
Accountant is a person who has the education and experience to evaluate the significance of information derived from a company’s financial records. Interpret its impact on operations, and participate in higher management decisions that are made as a result.
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A sales budget is a conservative estimate of the expected volume of sales, primarily for making current purchasing, production, and cash ...
- Other receivables
Other receivables include various forms of nontrade receivables which do not generally result from the operations of the business.
- Contra-revenue account
Contra-revenue account is an account that is offset against a revenue account on the income statement.
- Time period assumption
Time period assumption is a convenient assumption that accountants can divide the economic life of a business into artificial time periods. The time period assumption...