Search over 10,000 free study notes

Depreciation is a periodic year end accounting adjustment (not an actual cash change), which represents the physical wearing out of Non-Current Assets (NCAs) such as vehicles and buil...

Ratio analysis is a numerical technique of re-expressing financial statements. It aids decision making by summarising and interpreting financial statements more easily. There are different sets of ratios,...

The reducing balance method takes off a percentage of the value of a Non Current Asset each year. For example a an asset that is valued at £50,000 and depreciated at a rate of 10% per year will be depreci...

Accounting is the process of summarising, classifying, analysing financial statements to enable users of financial information make informed decisions

Balance sheet accounts are accumulated numbers after many years since the day of operation. Meanwhile, income statement accounts demonstrate the total value of transaction incurred only in the current (re...