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| Total Answers and Comments: 4 |
Last Update: January 31, 2009 Asked by: T.K.B.Srinivasan |
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Submitted by: vasudeo007
Answer 1: Purchasing order means order given to purchase anything.
2. Vendor means the one who sells
3. Sarbanes-oxley act.... I don't know.
4. debit and credit note: while making entry in your books of accounts you need the documentary voucher. So the voucher made stating what entry and why it is made is called debit/credit note.
5. basic accounting principles: search on google
6. dual aspect concept: each and every transaction has two sides. example: when you buy a shirt, then shirt comes to you while cash leaves you
similarly if you sell the same shirt to anyone then cash comes to you while shirt leaves you.
recording both aspects of coming and going is called dual aspect concept
7. depreciation and its types: Depreciation means reducing/lowering value of an asset because of its use. Like machines/vehicles gets rusty/slow because of consistent use.
Types of depre: straight line method and reducing balance method
straight line method: writing off the value of the asset in equal instalments reducing balance method: writing off the value of the asset on reducing balance
principle is same as straight interest and compounding interest
There is another thing called "Amortisation". which means that ceertain assets are not assets really and cannot be subject to depreciation so writing off their value is called amortisation. Example: Intellectual Property Rights, Patent Rights, querries and mines (coal mine etc), etc.
8: cash flow and funds flow: cash flow means direct entry of cash in your business and exit of the same funds flow means entry of funds (cash funds or non cash funds) and their exit non cash funds may mean rise in current assets or fall in current liabilities which was not due to any cash movement
9: capital gain: when any capital asset is sold and it is sold at a higher price than its book value then that extra gain is called capital gain. The word profit generally means revenue profits. While capital gain is generally received infrequently
Vasudeo
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