by Accountant Town | Aug 16, 2019 | Organizational
Definition of the Trial Balance —Lisle, in his “Accounting in Theory and Practice,” defines a trial balance as follows: A trial balance is a statement of ledger accounts prepared after the books of the concern have been posted, but before the closing entries are made,...
by Accountant Town | Aug 16, 2019 | Organizational
Principles of Accounting – Classification of Accounts The kinds of accounts to be kept depend upon the information desired. The primary demand is for information concerning the financial condition. The secondary demand is for information as to how the financial...
by Accountant Town | Aug 16, 2019 | Fundamental
Income Producing Factors of Accounting There are four distinct factors which produce income, namely, land, labor, capital and business organization. The income is classified as rent, wages, interest and profit. Land as used in the economic sense is understood to mean...
by Accountant Town | Aug 16, 2019 | Fundamental
Accounting Principles – Profit Motive of Business Profit is derived from the transfer, either temporarily or permanently, of land, goods, or services by the owner thereof or his agent. The media of organization through which such transfers are effected are those...
by Accountant Town | Aug 16, 2019 | Fundamental
Accounting Principles – Business Organization to Drive Income Business organization consists in supplying the wants of the masses for profit. Profit implies that the object is sales. Sales denote the transfer of ownership at an increased price over cost. This...
