Accounting Articles

What is an income statement? An income statement is a financial report that provides an overview of an entity's income and expenses for a specific period. An Income Statement is often referred to as a profit and loss statement. The income statement's primary objective...

What is a fixed asset? According to AASB 16, fixed assets are tangible assets that meet the following criteria: They are held for various purposes, including using them in the production or provision of goods or services, renting them out to others, or using them for...

What are current liabilities? Current liabilities are financial obligations that are expected to be settled within one year. According to AASB 101, a liability is classified as current when: The entity plans to pay off the debt as part of its regular business...

What is a balance sheet? A balance sheet is a financial statement that reports an entity’s assets, liabilities, and owner’s equity at a particular date. Also referred to as a statement of financial position, it is a financial document used by business entities,...

What is a cash flow statement? A cash flow statement is a financial report that tracks the movement of cash and cash like assets in and out of a business during a set time frame. This statement is vital for understanding an entity's liquidity, which is its ability to...

What are current assets? Current assets are a category of resources listed on an entity's balance sheet. According to AASB 101, an asset is classified as "current" if the entity expects to either realise, sell, or use it up within its normal operating cycle. The...

This article discusses cash vs accrual accounting as accounting methods, provides a case study, and offers tips on which method is suited for your business.