What is accounting? This was the first question in my first accounting book, from my first ever accounting class. The official definition in the book provided by the American Accounting Association said, the process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by users of the information. The main elements [...]

In extremely simple terms, a job cost sheet is a record or an inventory for a work that is in progress to meet an order that has been placed. A cost sheet is maintained for every job that is performed to meet the order with costs recorded for direct materials, direct labor and the manufacturing [...]

Your company, say ABC Pvt. Ltd. makes bags for women. You sell them in the market and at the end of the financial year, you would like to know how much revenue your company has got from the sale of your products to the consumers. For this, you calculate the net sales and gross sales [...]

Financial accountancy is an art and science that involves recording transactions in a particular manner. This activity can be traced back to the times of barter exchange when pottery and charcoal was used to keep a record of such contracts and transactions. The idea of accounting is simple, record the transactions as briefly and honestly [...]

In order to understand the multi step income statement, it is essential to first learn about the income statement of a company. Every company maintains it’s income statement. It is basically a financial statement of the company, that documents the overall performance of the company in terms of profits and expenditure over a specific accounting [...]