Explain why the Creditors Control account balance and the Creditors list total should be equal. 1.1

Q: What type of account must the sum of all subsidiary accounts be equal to?

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: what is the contrast the basic financial statements

A: Financial statements are written records that convey the business activities and therefore the…

Q: Describe the revenue recognition principle.

A: Definition:   Accrued revenue: Accrued revenue refers to the revenues that are generated from the…

Q: Explain the income & expenditure and Receipts & payment? Draw the format with example? What is the…

A: Income and Expenditure Account: Its a summary of all incomes and expenditures of current accounting…

Q: What is the difference

A: The amount of security or collateral that each type of creditor has in relation to the debts owed to…

Q: What is the difference between a nominal account and a real account?

A: A nominal account records accounting transactions for a single fiscal year. Accounting transaction…

Q: Define Balance Sheet Accounts.

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: Explain the revenue recognition principle.

A: Accounting principle:

Q: What are the main sections on a balance sheet?

A: The objective of this question is to identify and explain the main sections of a balance sheet. A…

Q: Distinguish between accounts receivable and account payable.

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: Do the terms 'debit' and 'credit' signify increase or decrease or can they signify either? Explain.

A: Debit and credit are fundamental accounting terms used to record financial transactions in…

Q: balance $ 14,237 Book balance $ 13,162 posit in transit tstanding checks +4,500 Bank service fees…

A: The bank record is sent to the customers monthly showing all the transactions with the bank. It…

Q: Define each of the following terms:k. Accruals; trade credit

A: There are two types of systems in accounting, one is a cash system of accounting and the other is…

Q: Why we call balance sheet a “balance sheet”?

A: A balance sheet is a very important statement for every company it provides a snapshot of your…

Q: do the terms dehit and credit signify increase or decrease or can they signify either ? Explain

A: The effect of debit or credit on an account depends upon the nature of that account. It depends…

Q: what are the different categories on the balance sheet and what do they represent?

A: The balance sheet is one of the three basic financial statements, and it is essential for financial…

Q: Why creditors control account may have debit balance

A: The creditor's control account displays the amount a firm has to give to the suppliers.

Q: Explain the components of balance of Payments Accounts and describe the  impact of deficit and…

A: The balance of payments (BOP), sometimes known as the balance of international payments (BIP), is a…

Q: Define Debit

A: Accounting depends on double entry system. As per dual aspect principle of accounting, each and…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is