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 of IFRS…
External Sources of finance: The choice of methods of financing is among the financial decisions taken by the management. One way of categorizing the sources of finance for business is to split them into internal and external sources. So, basically,…
Sources of Finance: Every business needs finance to run or grow the business, whereas the financial needs of every business are different according to the type and size of the business. There are several sources of finance, however, the objective…
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…
Objectives of internal control: Internal control refers to all the methods and procedures implemented within the organization to safeguard assets, enhance the reliability of accounting records, boost the efficiency of operations, and ensure compliance with laws and regulations. There are…
Difference between economic investment and financial investment: When entrepreneurs, corporate executives, and common people use the word investment, they almost always mean financial investment. In fact, the common meaning of the word investment is a financial investment. However, there is…
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: 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 will…