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Things You must know about the 3 Golden Rules of Accounting

They say debit and credit is easy if you learn 3 golden rules of accounting. But the question is “Do accounting professionals agree with this?”. The answer is yes but up to a certain point. Debit and credits are the… Continue Reading

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What is Ledger Balance? Ledger Balance Vs Available Balance Explained

Ledger balance is balance at the start of the day. This is different from your available balance. Available balance is obtained when we adjust our ledger balance for subsequent activities. A ledger balance is calculated at the end of each… Continue Reading

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What is the Monetary Unit Assumption? Explanation with Examples

Monetary unit assumption has two parts. The first part says that the monetary unit is stable in the long run and does not lose it’s purchasing power. The second part of the assumption says that every transaction and event related… Continue Reading

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What Does Semiannual mean?

The term Semiannual or semiannually is referred to when some event or transaction happens twice a year, or more simply to times in a year. Semiannual or semiannually is a common term in accounting, that’s why sacred accounting is adding… Continue Reading

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What is a Transaction | Transaction Types I Examples

Alright, this time we need to define transaction on our way to present the simplest accounting dictionary. In our daily life, we perform many transactions like when we go to the grocery store to buy some grocery or when are… Continue Reading

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5 ways to define Capital | Formula | Concepts | Examples

Do you know about 5 ways to define capital? if not, you’ll get to know at the end of this post. Actually, Capital is the amount of injection by the owner(s) into a business. Suppose Marta is starting out her… Continue Reading

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What are Audit Assertions? Balance Sheet and P&L assertions explained.

Audit Assertions are a representation by management that is embodied in the financial statements. These representations may be explicit or not. Assertions are used by the auditors to assess misstatements and to obtain evidence. Audit Assertions are about: Items appearing… Continue Reading