Sample Page
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5. First Normal Form
First normal form is a step in the process of normalizing a database, which aims to organize data in a structured and efficient way. For a table to be considered in first normal form, it must meet certain conditions: Each field in the table should contain atomic values, meaning that each field should store a…
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4. Newton Raphson Method
The Newton-Raphson method, also known as Newton’s method, is a technique for finding the roots of a real-valued function. The method starts with an initial guess for the root and then uses an iterative approach to improve the guess until the root is found with a desired level of accuracy. The method is based on…
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3. Functional dependency
Functional dependency in databases refers to a type of dependency where the value of one attribute (the dependent attribute) is determined by the value of one or more other attributes (the determinant attributes). This dependency is considered to be functional because it satisfies the properties of a function, which means that for a given set…
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2. Entity Relationship Model
Entity Relation Model (ER Model) is a method used to represent the design of a database in a visual diagram. It is a conceptual data model that focuses on the types of entities, attributes, and relationships between them. The ER model is an important part of the process of creating a well-designed database application and…
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1. Databases
Databases are collections of organized data that can be easily retrieved by a computer. They serve as a data access layer in multitier architecture and are typically run on dedicated computers. There are two main types of databases: SQL (Relational Database) and NoSQL (Non-Relational Database). SQL databases use a query string to request specific information…
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15. Accruals & Pre-payments
Accruals and prepayments are accounting concepts that relate to the recognition of revenue and expenses in the accounting records. They are used to ensure that financial statements accurately reflect the financial position and performance of a business. Accruals refer to the recognition of revenue or expenses that have been earned or incurred but not yet…
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14. Accounting Worksheet
An accounting worksheet is a tool used in the accounting process to assist in the preparation of financial statements. It is a spreadsheet that organizes and summarizes the accounting data for a business, allowing the accountant to easily review and adjust the figures before preparing the final financial statements. The accounting worksheet typically includes several…
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13. Accounting Errors
Accounting errors are mistakes or unintentional omissions made in the recording, classifying, or summarizing of financial transactions. They can occur at any stage of the accounting process and can have a significant impact on the accuracy and reliability of financial statements. There are several types of accounting errors that can occur, including: Commission errors: These…
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12. Compound Entries
Compound entries, also known as compound journal entries, are journal entries that involve more than two accounts. They are used to record transactions that have multiple effects on the financial statements. For example, consider a company that purchases inventory on credit from a supplier. The purchase of inventory will increase the inventory asset account and…
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11. Reversing Entries
Reversing entries, also known as reversing entries, are journal entries made at the beginning of an accounting period to reverse the effects of certain accrual-basis adjusting entries made at the end of the previous period. They are used to ensure that the financial statements accurately reflect the financial position and performance of a business. Accrual-basis…
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10. Income Summary Account
The income summary account is a temporary account that is used in the closing process to calculate the net income or net loss for an accounting period. It is a suspense account that is used to accumulate the balances of all revenue and expense accounts in order to determine the net income or net loss…
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9. Post-Closing Trial Balance
A post-closing trial balance is a report that lists the balances of all permanent accounts (also known as real or balance sheet accounts) after the closing entries have been made. It is prepared after the closing entries have been recorded and is used to verify the equality of the debit and credit balances in the…
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8. Closing Entries
Closing entries, also known as closing the books, are journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts. Temporary accounts, also known as nominal or revenue accounts, include income, expenses, and dividends. Permanent accounts, also known as real or balance sheet accounts, include assets,…
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7. Adjusting Entries
Adjusting entries are entries made in the accounting records at the end of an accounting period to reflect any outstanding transactions or errors that have been identified. They are used to ensure that the financial statements accurately reflect the company’s financial position at the end of the period. Adjusting entries are made after the unadjusted…
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6. Unadjusted Trial Balance
An unadjusted trial balance is a financial statement that lists the balances of all the ledger accounts in a company’s general ledger at the end of an accounting period, before any adjusting entries have been made. It is used to ensure that the total debits equal the total credits in the general ledger, which indicates…
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5. Adjusted Trial
An adjusted trial balance is a financial statement that lists the balances of all the ledger accounts in a company’s general ledger at the end of an accounting period, after adjusting entries have been made. It is used to ensure that the total debits equal the total credits in the general ledger, which indicates that…
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4. Trial Balance
A trial balance is a financial statement that lists the balances of all the ledger accounts in a company’s general ledger at a specific point in time. It is used to ensure that the total debits equal the total credits in the general ledger, which indicates that the accounting records are in balance. The trial…
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3. Ledger Accounts
A ledger account is a record of financial transactions that relate to a specific asset, liability, equity, revenue, or expense. Ledger accounts are used to record the financial transactions of a company and are organized into categories, such as assets, liabilities, equity, revenue, and expenses. Each ledger account has a name and a balance. The…
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2. Journal Entries
Journal entries are the first step in the accounting cycle and are used to record financial transactions in a company’s general ledger. A general ledger is a record of all the financial transactions that a company makes, and it is organized by account. Journal entries are made up of two parts: a debit and a…
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1. Accounting Cycle
The accounting cycle is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. It involves the following steps: Identify transactions: The first step in the accounting cycle is to identify the transactions that have occurred during the period being reported on. This can include sales,…
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21. Proportionate Consolidation
Proportionate consolidation is a method of accounting for joint ventures, in which the venturers (the parties involved in the joint venture) recognize their share of the assets, liabilities, revenues, and expenses of the joint venture in proportion to their ownership interests. Under proportionate consolidation, the venturers do not recognize their share of the joint venture…
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20. Acquisition Method
20. Acquisition Method The acquisition method is a method of accounting for business combinations, in which the acquirer records the assets and liabilities of the acquired company at their fair values as of the acquisition date. The acquisition method is also known as the purchase method, as it is used when the acquirer purchases the…
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19. Full Goodwill Method
The full goodwill method is a method of accounting for business combinations, in which the acquirer recognizes the entire excess purchase price (the difference between the acquisition cost and the fair value of the identifiable assets and liabilities) as goodwill. Under the full goodwill method, no bargain purchase gain is recognized. The full goodwill method…