Accounting

Accounting is the art of serving necessary and effective financial information of economic entities through the process of recording, summarizing, analyzing and reporting transactions to concerned parties. It conveys information about the financial health of a business or individual. That is why accounting is well known as an information system in today’s business world. In … Read more

Asset

Asset is a resource having economic value someone owns or controls with an expectation of getting future economic benefit. In business or accounting, an asset is an economic resource that an individual, a company, a corporation or a country purchased, acquired or achieved which contributes to generating income or cash flow. An asset can be … Read more

Accounting infrastructure

Accounting Infrastructure is a set of systems and conventions that directs the functional accounting practice of an enterprise or a professional body under a legal framework and adopted accounting standards. A standard accounting infrastructure ensures the quality of financial reporting for its stakeholders. [subtitleh2]Components of a standard accounting infrastructure are:[/subtitleh2] 1. Information producer and users … Read more

Act of God

Act of God is an unforeseen and sudden disaster results from natural causes. It cannot be avoided through the use of caution and preventive measures. Act of God is beyond human control and none is responsible for it. Act of God includes Hurricane, Tornado, Earthquake, Hail, Flood, Tsunami, Storms, Lightning, Volcanic hazards etc. Acts of … Read more

Alien insurance company

An Alien Insurance Company is an insurer that has incorporated or formed in one country and provides its service to another country. An alien insurance company has to follow the rules and regulations of that country where it provides its service. For example, an insurance company is incorporated in the United Kingdom and provides its … Read more

Accelerated depreciation

accelerated-depreciation

Accelerated depreciation method is a depreciation method that charges major portion of the cost of assets in earlier years and minor portion in later years of assets life. This depreciation method defers tax liabilities in earlier years of assets life since higher depreciation expense reduces taxable income. The logic behind the accelerated depreciation method is … Read more