In this article we will discuss about Gains and Losses:- 1. Meaning of Gains and Losses 2. Features of Gains and Losses 3. Recognition. Meaning of Gains and Losses: Gains are defined as increase in net assets other than from revenues or from changes in capital. Gains are increases in equity (net assets) from peripheral or incidental transactions of an [...]
In this article we will discuss about Expenses:- 1. Meaning of Expenses 2. Categories of Expenses 3. Recognition. Meaning of Expenses: Expenses are the monetary amount of resources used up or expended by an entity during a period of time to earn revenues. Expenses are essentially cost incurred in the process of earning revenues through the using or consuming of [...]
In this article we will discuss about Assets:- 1. Definition of Assets 2. Characteristics of Assets 3. Objectives of Valuation 4. Types. Definition of Assets: Financial accounting has basic elements like assets, liabilities, owners' equity, revenue, expenses and net income (or net loss) which are related to the economic resources, economic obligations, residual interest and changes in them. Similarly, balance [...]