Difference between Statement of Affairs and Balance Sheet

Both the Statement of Affairs and the Balance Sheet represent the assets and liabilities of a business entity as of a specific date. However, there are some significant differences between the two. Let’s find them out in the discussion below. The main difference between the two (Statement of Affairs and Balance Sheet) In contrast to…

Features of Single Entry System, Advantages & Drawbacks

It is well known that the double entry system of accounting is used by the majority of businesses. But sometimes small businesses and professions that cannot afford to hire qualified accountants typically use the single entry system of accounting. They just maintain a cash book and the personal accounts of customers and suppliers under this…

Difference between Single Entry System and Double Entry System

Many times, small businesses frequently fail to maintain a thorough accounting system based on the double entry principle. The businessman is usually satisfied with the bare minimum of facts, such as cash and bank account balances and whether or not he has made a profit or loss. They keep rough or sketchy records that serve…

The Difference between Cost Centre and Profit Centre

When a business grows, its functions, organizational structure, and other related operations also grow in terms of volume and complexity. The management often delegates responsibility to various persons or departments to have better control over the business. These persons or departments are known as responsibility centres. There are four major types of responsibility centres, i.e.,…

The Difference between Cost Centre and Cost Unit

A product or service, a project, a department, or any activity to which a cost corresponds is referred to as a cost object. To be more meaningful, the term ‘cost’ should always be associated with a cost object. A sound costing system requires the establishment of a meaningful cost object. This cost object can be defined…

Difference Between Capital Expenditure and Revenue Expenditure

Following the matching principle of accounting, all revenue items must be matched to their costs so that a correct picture of profit or loss in a year can be ascertained. For this, the classification of capital and revenue expenditure is important. In the below paragraphs, you will get to know the difference between capital expenditure…

Difference Between Cash Book and Pass Book

The majority of commercial transactions are conducted through bank accounts. Transactions with banks are recorded in the bank columns of the cash book by businesses. Likewise, the bank also keeps customer accounts in its ledger, which it provides to customers in the form of a statement or a book called a Pass Book. As a…

Difference Between Cash Book and Cash Account

A cash book and cash account slightly vary from one another in the sense that a cash book is a specifically maintained ledger (subsidiary book) for recording cash transactions whereas a cash account is an account within the ledger. A Cash Book records cash transactions directly whereas a Cash Account is a part of a…

What is Budget Report? All you need to know about!

Many businesses undertake the process of budgeting effectively but they fail to follow it up with an appropriate budget report. The final stage of any budgeting process is the preparation of well-designed budget reports without which the purpose of budgeting is nullified. Imagine you made a budget for sales of different regions but never checked…

Is there a difference between International Business and International Trade?

How are international trade and international business different? Most people think that International Trade and International Business are one and the same thing. But this is not true. There is no doubt that international trade which includes export and import of goods has always been the foremost component of international business. However, over the period…