Articles on Financial Accounting

What is Accounting? – Meaning and Important Concepts

Accounting has been hailed by many as the “language of business”. There are many quotations like “A pen is mightier...

History of Accounting

One can never really understand a subject, unless they know where it came from. Therefore, a short history of the...

Objectives of Accounting

Every activity that a business firm does must be done for a reason and accounting is no exception. Accounting helps...

Limitations of Accounting

Although accounting may be heralded as being the language of the business, it is definitely not error-free. This has been...

Who Uses Accounting Data ?

Financial reporting is used by a wide variety of users for a wide variety of purposes. For this reason it...

Entity Concept in Financial Accounting

The entity concept is one of the central tenets of accounting. An understanding of the same is therefore of paramount...

Different Types of Entities in a Business

Businesses may all look the same when you look at the building in which they operate, the employees they hire...

Different Types of Accounts in a Business

The entity concept separates the concerns of the owners from the business. An extension of the same concept is the...

Debits and Credits – Building Blocks of Double Entry Accounting System

Debits and credits are the building blocks of the double entry accounting system. Many accounting students find the usage of...

Golden Rules of Accounting – 3 Main Principles

While the system of debit and credit is the foundation for maintaining balance and accuracy, it can often feel overwhelming...

Fundamental Principles of Accounting

Following are the basic fundamental principles of Accounting: Monetary Unit Accounting needs all values to be recorded in terms of...

Cash vs. Accrual Basis of Accounting

Cash Basis of Accounting Cash Basis of Accounting uses receipts and payments of cash to record incomes and expenses. Therefore,...

What is Single Entry System ? – Pros and Cons

What is Single Entry System ? Single entry accounting systems record only one side of every transaction. This happens because...

Double Entry Bookkeeping System in Accounts

The double entry system of bookkeeping is said to have revolutionized growth in modern business. It is only because businesses...

Need for a Uniform and Common Theory of Accounting

Need for a Uniform and Common Theory of Accounting The frequent attempts by experts and professionals on having a “theory”...

Need for a Theory of Accounting to Improve the Accounting Profession

Creative Accounting and the Need for a Theory of Accounting The rise of “creative accounting” practices, an euphemism for hiding...

An Overview of Contracts and Why They are Important to Business and Society

Contracts govern all transactions whether they are between firms or between firms and private individuals. Indeed, in most of the...

The Pitfalls of Quarterly Capitalism

Creating the maximum possible shareholder value had always been the cornerstone of capitalism. All economic theories had always been aimed...

Impact Investing: Where Profit Meets Social Responsibility

Finance as a force for good Even before the 2008 global financial meltdown, finance worldwide was not exactly successful at...

How Green Bonds Work?

Stakeholders all over the world are concerned about the irreversible damage being caused to the ecosystem of the earth. There...

Redlining: Americas Racist Financial Policies

America is a developed country and an inclusive society. It should ideally no longer face the problems of racism and...

Universal Childcare: A Financial Analysis

Universal childcare is amongst the latest of government-funded programs which several Senators across America have started demanding. For instance, Senator...

Why College Education Should Not Be Free?

President Ronald Raegan had once famously said that “Big government is not the solution to the problem. In fact, big...

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Articles on Financial Accounting