Accounting cycle is a step-by-step strategy of recording, classification and summarization of economic transactions of a enterprise. There are three forms of Equity accounts that can meet the needs of most small businesses. These accounts have different names depending on the corporate construction, so we checklist the different account names in the chart under. The accounting remedy and presentation of transactions and events in monetary statements needs to be ruled by their substance and not merely by the legal form.
For instance, if a company decides to buy a new piece of manufacturing tools relatively than lease it. The chance … Read More