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Showing posts with the label Accrual basis of Accounting

HUMAN RESOURCE MANAGEMENT, OBJECTIVE AND SCOPEOF HRM

  Human resource management is concerned with the "people" dimension in the management. Human resource management means the management of people within an organization . Since,every organization is made up of people, acquiring their services, developing their skills, motivating them to higher level of performance and  ensuring that they continue to maintain their commitment to the organization are essential to achieve organizational objectives. Those organization that are able to acquire ,develop ,stimulate and keep outstanding workers will be both effective and efficient.  Those organizations that are ineffective or inefficient risk the hazards of stagnating or going out of business. Human resource does creates organization and makes them survive and prosper.  If human resources are neglected or mismanaged, the organization is unlikely to do well. "Human resource management is the field of management which has to do with planning organizing and controlling the func...

WHAT IS ACCRUAL BASIS IN ACCOUNTING

  ACCRUAL BASIS  Under this basis of accounting, revenue is recognized when sales takes place or ownership of goods and services  changes from seller to buyer, whether payment for such sale is received or not . In other words, incomes are recorded when they are earned or accrued, irrespective of the fact whether cash  is received or not. For example   Rent due  to landlords but not paid will be treated as expenses for the period when it is due and not in the period when it is paid. Accrual basis of Accounting is based on realization and matching principle. This make it necessary to consider outstanding expenses, accrued income, prepaid expenses  etc.for the preparation of financial statements.  Company Act 2013 , requires companies to follow accrual basis of accounting, in maintaining books of accounts.  WHY IS ACCRUAL BASIS OF ACCOUNTING  IMPORTANT  1. It disclosed true financial position of business at the end of  a part...