- Trending Categories
- Data Structure
- Operating System
- C Programming
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
Describe about systems of accounting.
Accounting is a process of making a financial report which consists of business transactions and preparing income statements, profit and loss accounts and balance sheets. The system which maintain these financial records are known as accounting system.
There are different types of accounting systems, each has its own functionality. The main aim is to manage the financial activities (revenue, expenses and liabilities).
Accounting systems can be maintained manually and are computerised. Manually accounting is difficult to maintain and chances for miscalculations and errors are high, whereas computerised accounting is easier to maintain, is accurate and saves lot of time.
Types of accounting systems are −
- Single entry system.
- Double-entry system.
- Manual accounting system.
- Computerised accounting system.
System of accounting for recording business transactions are explained below −
Cash system of accounting − As the name suggest, only cash based transactions are recorded. No outstanding payments, dues are recorded in cash system of accounting. Government maintain accounts in cash only.
Accrual system of accounting − In this, both cash and credit transactions are recorded. Commercials, non-trading business will follow this system.
Single entry system − In this, only personal and cash transactions are recorded. These are incomplete, inaccurate.
Double entry system − In this, both credit and debit transactions are recorded. These are commonly used in bookkeeping.
- Describe about bank reconciliation concept in accounting & finance
- Describe the term journal in accounting.
- Describe the term amortisation in finance and accounting.
- Explain about income statement in accounting.
- Explain about balance sheet in accounting.
- Describe about net income approach in capital structure.
- Explain about types of accounting and its golden rules.
- Explain about straight line depreciation in accounting.
- Explain about Double-declining balance method in accounting.
- Explain about single step income statement in accounting with example.
- What is Accounting? Different Types of Accounting
- What does color pink and green describe about a person's personality?
- Describe the types of factoring.
- Describe concept of composite depreciation.
- How can I get the information about a particular column of a table by MySQL DESCRIBE statement?