Equity represents the residual interest in a company’s assets after deducting liabilities. For owners, it reflects their stake in the business. In corporations, it includes common stock, retained earnings, and additional paid-in capital. Equity increases with profits and decreases with losses or withdrawals.
Encashment involves converting negotiable instruments like cheques, bills, or bonds into cash. In accounting, it represents the realisation of funds…
Estimated useful life refers to the anticipated period an asset will remain productive and contribute to revenue generation before becoming…
Errors and omissions refer to unintentional mistakes or oversights in accounting records, such as misclassifications, arithmetic errors, or missing transactions.…
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