Advantage of Accounting Some Common advantage of accounting are discussed below : Consolidation of Business Work : It systematically records all financial transaction related to the respective year in the account books.Because of their size and complexity, it is not possible to remember each and every transaction for a long time. Financial Statements Preparation : Financial reports such as Trading and report for gain and loss, Balance Sheet can be easily done if transactions are properly recorded. For the preparation of the entity's financial statements, proper recording of all financial transactions is very important. It easily facilitates the comparison of year – to-year financial results. The management may also analyse the systematic recording of all financial transactions in accordance with the entity's policies. Decision Making : Decision-making is easier for management if the financial transactions are properly recorded. Accounting data allows man
It would be nice to know when that interest is applied to your balance and how quickly the fund will expand when you earn interest on your savings. Together with the interest rate, an account's accrual and compounding terms decide the total earnings on your assets. Factors generally used for interest earnings are daily accrual with quarterly compounding. Interest can accrue on any time schedule; common periods include daily, monthly and annually. Daily accrual, for example, means interest amounts are added to the account balance every day. Some modern computations have interest accrue continuously based on mathematical formulas that slice time more and more finely as time approaches zero. Accrued Interest In financial terminology, "accrues" means the same thing as "accumulates." Interest is considered accrued when it is added to the balance on the account, which accrues on loans such as a mortgage, on savings accounts, student loans, and on other investmen