Author name: IPAT

The Accounting Cycle is a systematic process of recording, classifying, and summarizing financial transactions of a business. It ensures that financial statements are prepared accurately and in compliance with accounting principles. Phases of the Accounting Cycle The accounting cycle consists of eight major phases, as detailed below: Identifying and Analyzing Transactions Every financial transaction (e.g., […]

Traditional Approaches in Accounting The Golden Rules of Accounting are fundamental principles that guide the recording of financial transactions. Approaches in Accounting are the rules form the basis of the double-entry accounting system, where every transaction affects two accounts: one account is debited, and the other is credited. The rules are categorized into three types of

At the end of a financial year (FY), adjustment entries are made to ensure that the financial statements accurately reflect the financial position and performance of the business in accordance with the accrual basis of accounting and accounting principles. These adjustments account for revenues earned, expenses incurred, and changes in assets or liabilities that are