What is financial accounting in simple words?
What is financial accounting in simple words?
Financial accounting is a specific branch of accounting involving a process of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time.
What is the meaning of operating budget?
An operating budget is a forecast of the revenues and expenses expected for one or more future periods. An operating budget is typically formulated by the management team just prior to the beginning of the year, and shows expected activity levels for the entire year.
What is the meaning of journal in accounting?
A journal is a detailed account that records all the financial transactions of a business, to be used for the future reconciling of accounts and the transfer of information to other official accounting records, such as the general ledger.
What are the different types of budgets in accounting?
Types of budget in accounting
- Basic budget. Purpose: The purpose of a basic budget is to map out simple expenses and income.
- Short-term budget.
- Fixed budget.
- Cash budget.
- Flexible budget.
- Functional or operation budget.
- Master budget.
- Performance budget.
What is static budgeting?
A static budget is a type of budget that incorporates anticipated values about inputs and outputs that are conceived before the period in question begins. However, when compared to the actual results that are received after the fact, the numbers from static budgets can be quite different from the actual results.
What is mean by income and expenditure account?
The Income and Expenditure Account is a summary of all items of incomes and expenses which relate to the ongoing accounting year. It is quite similar to the Trading and Profit and Loss Account of a trading concern and is prepared in an exact manner. Income and Expenditure Account is prepared on an accrual basis.
What is the format of income and expenditure account?
Format Like any other account, income and expenditure account consists of two sides – a debit side to enter expenditures and and a credit side to enter revenues or incomes of non-trading concerns. A simple format of this account is shown below: Characteristics of income and expenditure account
What are the different types of income and expenditure statement?
1. Income and Expenditure Statement Template 2. Annual Income and Expenditure Statement 3. Comprehensive Income and Expenditure Statement 4. School Income and Expenditure Statement 5. Income and Expenditure Statement Example 6. Statement of Income and Expenditure 7. Accrued Income and Expenditure Statement
What are some other words for expenditure?
other words for expenditure. MOST RELEVANT. amount. consumption. cost. disbursement. expense. figure. investment.
How do you prepare an income and expenditure account?
Income and Expenditure Account is prepared on an accrual basis. All incomes and expenses relating to the accounting year, whether they are actually received and paid or not, are taken into consideration. Expenditure is recorded on the debit side and income is recorded on the credit side.
