Entity Concept
The entity concept states that a business must be treated as a separate economic unit from its owners or stakeholders. Personal and business transactions are recorded distinctly to ensure accurate reporting. This principle is foundational in accounting, it safeguards financial clarity, prevents commingling of funds, and supports transparent auditing and taxation.
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Equitable Charge
An equitable charge is a claim on an asset that does not transfer ownership but grants the lender rights over…
Extended Trial Balance
An extended trial balance is a worksheet that expands the standard trial balance to include adjustment, income statement, and balance…
Expense Allocation
Expense allocation is the process of distributing shared or indirect costs across departments, projects, or cost centres. It ensures expenses…
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