by Accountant Town | Aug 16, 2019 | Balance Sheet
Accounting Principles – Reserves A reserve is a portion of proprietorship which has been set aside for some specific purpose. This view is perhaps a somewhat novel one in that the definition includes all classes of reserves. The word as used here is intended to...
by Accountant Town | Aug 16, 2019 | Balance Sheet
Accounting Principles – Funds and Reserves The word fund as used herein is intended to be representative of a special fund; one which has been set aside out of the general assets to be devoted to some specific use. The reserve in question must have been created...
by Accountant Town | Aug 16, 2019 | Balance Sheet
Accounting Principles – Equity Proprietorship is usually understood to mean ownership. In connection with business organization it signifies ownership of the assets. If there were no liabilities outstanding this would be strictly true. Such a condition rarely...
by Accountant Town | Aug 16, 2019 | Balance Sheet
Accounting Principles – Classification of Assets and Liabilities Assets may be divided into five general groups, namely, fixed or capital assets, working and trading assets, current assets, miscellaneous or special assets and deferred charges to expense. Fixed...
by Accountant Town | Aug 16, 2019 | Balance Sheet
Accounting Principles – Nominal Accounts In connection with nominal accounts it will be remembered that they were defined as those accounts which reflect changes in financial condition. The elements of financial condition are assets and liabilities. Nominal...
