Accounting’s Relation with Other Disciplines (Explained)

Accounting has a relationship with other disciplines management, economics, mathematics, computer science, statistics, law, political science, and engineering.

Trial Balance Errors and Rectification of Trial Balance Errors

Trial balance errors are errors in accounting process that cannot be detected by the trial balance sheet. 2 types of limitations of trial balance are clerical errors, and errors of principles. Clerical errors are made by a human. Errors of principle happen when an accounting principle is not applied.

Difference between Bookkeeping and Accounting

The main difference between bookkeeping and accounting is; bookkeeping is the primary stage of the whole accounting process and accounting is the second or final stage of the whole accounting process.

6 Constraints of Accounting

Constraints of accounting are actually the limit or boundaries that are necessary for providing information with the qualitative in characteristics. The 5 constraints of accounting are; cost-benefit, materiality, consistency, conservatism, timeliness, and industry practice principle.

History and Evolution of Accounting

On the basis of the data received from the history of evolution and the features of gradual development, history of Accounting can chronologically be classified into four stages; emergent stage, preanalytic stage, development i.e. analytic stage, modem age.

Bank Reconciliation Statement (Definition, Types, Template)

Bank reconciliation Statement shows differences between balance shown in bank statement and balance shown in depositor’s accounting record.

Why Accounting is called the Language of Business

Accounting is called the Language of Business because accounting presents and communicates various information in the form of statements and reports to the interested parties like owners, employees, management, investors, buyers, sellers and more.

Accounting Cycle – 10 Steps of Accounting Process Explained

Accounting cycle is the sequence of accounting procedures used to record, classify and summarize accounting information. 10 Steps of Accounting Cycle are; (1) Classify transactions, (2) Journalizing them, (3) Post to Ledger, (4) Unadjusted Trial Balance, (5) Adjusting Entries, (6) Adjusted Trial Balance, (7) Financial Statements, (8) Closing Entries, (9) Closing Trial Balance, (10) Recording Reversing Entries.