Accounting Articles

Income Statement   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...

Fixed Assets   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...

  Current liabilities   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...

Balance Sheet   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...

Current Assets   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...

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.