Accounting profit vs economic profit overview: The term profit in general, is the difference between the total revenues and total expenses. However, economists use the term “profit” differently from the way accountants use it. This is just because of the…

Types of Share Capital Overview Share capital is the sum of all funds that companies raise by issuing shares to investors. Following is the list of types of share capital that we will discuss in this post. 1) Authorized capital 2) Issued…

Trial balance in accounting overview: A trial balance in accounting is a list of accounts and their balances at a given time, particularly at the end of the accounting period. A trial balance is the next step after the general…

Impact of Inventory Errors on financial statements Inventory errors are very common among the accounting errors. There might be many reasons, however, the impact of inventory errors on financial statements is really alarming.  Inventory management is no doubt very tricky…

Overview of IFRS VS GAAP: Accounting students and professionals are always keen to learn the differences between the two primary sets of accounting principles and standards. We call them IFRS and GAAP. Let’s proceed to the discussion with an understanding…

What are retained earnings? Retained earnings (RE) represent the portion of the business profit that the company retains within the business. It is the profit that has not been paid out as dividends or transferred to any other reserve. A…

Types of intangible assets: There are various types of intangible assets, however, in this article, we are about to discuss the six most important types of intangible assets which are patents, trademarks, copyrights, goodwill, franchises, and license.   1- Patents…

What are Intangible Assets? Being an accounting student or business professional, you see many business assets that you can touch physically and also aware of them as well. However, there are still many assets that do not exist physically and…

Users of accounting information An accounting information system processes financial and operational data into reports. These reports are useful for users of accounting information. The two broad groups of users of accounting information are internal users and external users. Let’s…

Future of Accounting Profession: New technology is changing the way people work across all industries. The same holds for the accounting profession. The evolution of technology is changing the future of accounting, and many accountants are afraid that technological innovations…