Accounting

Definition: In the accounting world, Journal refers to a book wherein transactions are logged for the very first time, and that is why it is also called as "Book of Original Entry". In this book, all the regular business transactions are entered sequentially, i.e. as an when they arise. After that, the transactions are posted to the Ledger, in the concerned accounts. When … [Read more...] about Journal

Definition: Financial Statement are systematically maintained, written summary of all the ledger account heads, exhibited in a way that it provides a clear view of the financial position, profitability and performance of the enterprise. These are prepared at the end of the accounting period, which is usually one year, after that it is audited by the auditor, to check their … [Read more...] about Financial Statement

Definition: Trial Balance refers to a schedule, in which the balances of all ledger books are assembled into debit and credit columns, to check the arithmetical accuracy of the entries posted in the ledger accounts. Trial Balance is a tabular statement, containing a specified date on which it is prepared, indicated at the top of the statement. The balances of all the assets, … [Read more...] about Trial Balance

Definition: Management Accounting refers to the application of professional knowledge, techniques and concept in preparing the accounting information in such a manner, which helps the management of the organization in the formulating plans and policies, controlling the operations of the organization, decision making, optimising the use of resources, disclosure to management and … [Read more...] about Management Accounting

Definition: A Balance Sheet refers to the position statement, which lists out the balances of the assets, liabilities and owner's equity, i.e. capital, of an enterprise at a specified date. While the assets show the resources owned by the company, liabilities and capital exhibits the funding of resources. Characteristics of Balance Sheet The preparation of Balance Sheet … [Read more...] about Balance Sheet

Definition: Accounting is a process, which systematically and comprehensively records business events and transactions, and translate it into the financial information of the business entity to assist  the stakeholders in the decision-making process. In this process, the transactions are identified, recorded, arranged, summarized, simplified properly and then communicated to … [Read more...] about Accounting

Definition: Strategic Cost Management or otherwise called as SCM is the cost management technique that aims at reducing costs while strengthening the position of the business. It is a process of combining the decision-making structure with the cost information, in order to reinforce the business strategy as a whole. It measures and manages costs to align the same with the … [Read more...] about Strategic Cost Management (SCM)

Definition: Cost Accounting implies a branch of accounting which deals with recording, classifying, accumulation, allocation and control of the cost of production. It captures the incomes and expenditures and prepares statements and reports for the respective period, so as to determine and control costs. It aims at keeping a record of the cost of production, by ascertaining … [Read more...] about Cost Accounting

Definition: Standard Costing is a costing method, that is used to compare the standard costs and revenues with the actual results, in order to arrive at the variances along with its causes, to inform the management about the deviations and take corrective measures, for its improvement. The term 'standard cost' can be defined as the expected cost per unit of the products … [Read more...] about Standard Costing

Definition: Process Costing is defined as a branch of operation costing, that determines the cost of a product at each stage, i.e. process of production. It is an accounting method which is adopted by the factories or industries where the standardized identical product is produced, as well as it passes through multiple processes for being transformed into the final … [Read more...] about Process Costing