Blog | maijson GKB

In accounting, there are five key types of accounts: a). Asset Accounts track resources owned by the business, like cash and inventory. b). Liability Accounts record obligations, such as money owed to suppliers or loans. c). Equity Accounts show the owner’s share of the business, including retained earnings. d). Revenue Accounts capture income from sales or services, like sales revenue or interest earned. e). Expense Accounts track the costs of running the business, such as salaries and rent. These accounts help businesses monitor and report their financial health. Asset Accounts   In financial accounting, asset accounts show the different resources that an organization owns or controls, which have economic value and help it to make money. These resources could be intangible like patents and intellectual property or tangible like cash and goods. Keep in mind that cash is a highly liquid asset that is necessary for day-to-day operations. Accounts Receivable: It represents the s...

IFRS is a set of standards developed by the International Accounting Standards Board (IASB). It merely provides guidelines for harmonizing standards and unifying accounting processes around the world. IFRS is used in the European Union, South America, and parts of Asia and Africa. GAAP is a set of principles that U.S. companies must follow when preparing their annual financial statements. It is an authoritative approach to accounting that ensures that there are no inconsistencies in the financial statements filed by listed companies with the U.S. Securities and Exchange Commission (SEC). This allows investors to intercompare the financial statements of various listed companies.                                                   Image Credit: Pixabay Key differences between IFRS vs GAAP Inventory Valuation: Generally, GAAP permits inventory valuation using the L...