Asset and liability basics:accounting

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The Accrual Accounting requires an accountant who notes the transactions even if no money has been actually exchanged. This method works on the principle of comparing or seeing the ratio of the expenses to expenditure. If the expenditure is more, you need to cut down your luxuries, if not then it痴 always good to have some savings for future. This type of accounting tells you the amount that you owed; this might not match with the figure of your bank balance.


by: Mansi gupta
Knowledge of accounts can make life much easy. If you are to invest in a new business or joining your forefather痴 business, planning to take some loan, looking for job in any marketing company, desire to be the manager of a multinational company or have the onus to manage your own assets and liabilities, knowing some basics of accounts becomes mandatory.
Accrual Accounting

Broadly, accounting is bifurcated into two categories-
Cash Bases Accounting
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The Cash Based accounting pertains to the management of an individual痴 personal monetary transactions. In this case, he keeps a track of the money he withdrew, deposited, gave or received from someone etc. This accounting comes to life when actual cash transactions take place.