In the U.S., when a small business grows, claiming the attention of investors or goes public, its accounting departments are required to immediately stick to the Generally Accepted Accounting Principles or GAAP.

Simply put, GAAP is a common, accounting language for companies to record accounting and financial information. The sole objective of GAAP is to enable organizations to have a standardized method of treating financial and accounting data so that the interpretation, analysis, sharing and communication of financial results and reports with the external parties will be easier and made transparent.



How Can You Prepare for Accounting Job Interview

You may also agree, the job of an accountant is not as easy as it is perceived. The accountant carries a heavy responsibility on his shoulders helping business organizations in taking the right decision based on the financial report. Hence, hiring such a personnel for the company is a tough job for the interviewer wherein he does not only analyse you on the basis of your basic accounting knowledge but also on the basis of your leadership, team management, and communication skills.

If it’s not easy to crack accounting interview, it’s not easy for an interviewer as well.


Understanding Accrued Income Accounting Treatment of Accrued Income

Cash Basis of Accounting System:

Cash Basis of Accounting is a system of writing books of accounts in which only cash transactions are recorded. This implies that in cash basis of accounting, revenue or expenditure is recorded only when cash is received / paid for the respective transactions. This system is generally used only by small traders who do not require to get their books of accounts audited. In this system, expenses are recorded only when cash is paid; similarly, revenues are recorded only when cash is received.



The term 'accounting conventions' includes those customs or traditions which guide the accountant while preparing books of accounts. Conventions provide a standardized methodology that acts as a reliable means to compare financial results of different years. Accordingly, accounting conventions govern how companies and people prepare financial reports.


Capital Receipts V2Fs Revenue Receipts

In one of our previous blogs we have discussed about Capital Expenditure and Revenue expenditure. Let us now understand Capital Receipts and Revenue Receipts.

Capital Receipts:

Capital receipts are the income received by the company which is non-recurring in nature. They are part of the financing and investing activities rather than operating activities. The capital receipts either reduces an asset or increases a liability. The receipts can be generated from the following sources:



Accounting by nature is a task beyond menial recording of numbers and figures. Our previous articles have explained in depth, the relevance of accounting for businesses and individuals in the day-to-day management of financial resources. In this blog, our goal is to dive deeper into the branches of accounting —financial and management accounting, their definition and fundamental differences to broaden our readers’ understanding and career options.

Both financial and management accounting offer businesses the insights needed for decision-making and maximizing profitability. However, they have vast differences in the way the activities are carried and the parties that are involved in those operations.

Financial Management