Value of unsold goods at the end of an accounting period is termed as closing stock. It is valued at cost price or the realisable value, whichever is less. Treatment of closing stock:
(i) When closing stock is given in trial balance: It is shown on Assets side of Balance sheet only.
(ii) When closing stock is given in the adjustment: It is shown at two places-
(a) Asset side of balance sheet
(b) Credit side of Trading Account.

Accounting information when contained in a computerized environment is called accounting information system. It is a system that performs the enterprises accounting applications by processing high volume of data. It is widely used in profit as well as non-profit organizations because the accounting information that it provides is used not only by the accounts department but also by other departments, like production department, human resource department, market department, manufacturing department etc. Accounting information system gathers data describing the organizations activities, maintains a detailed financial record of the organizations operations, transforms the data into information and makes the information available to users both inside and outside the organization. Accounting information system processes the data of the enterprise. It collects the data, transforms the dat into information and makes the information available to the user.
An Accounting Information System is a system of collecting, processing, summarizing and reporting information about a business organization in monetary items.

Difference between bills of exchange and Promissory note:

Goodwill is an intangible asset as it cannot be seen or touched. Fictitious assets have no market value, but goodwill has a market value as it can be sold. Therefore, goodwill is not a fictitious assets.

It is necessary and useful for a business to know continuously the cash or bank balance in hand. For this purpose and for facilitating the record of cash transactions, the Cash Book is maintained. The number of cash transactions in a firm is generally large and therefore, it becomes convenient to have a separate Cash Book, to record such transactions.

Distinguish between Fundamental Accounting Assumptions and Accounting Principles

Stock (Inventory) : The term 'stock' refers to the goods lying with the firm on a particular date. It may consist of raw materials, semi-finished goods and finished goods. Inventories are tangible property
(i) held for sale in the ordinary course of business,
(ii) in the process of production for such sale, or
(iii) to be consumed in the production of goods or service for sale. The stock is valued on the basis of "cost or market price, whichever is less" principle. Stock in the beginning of the accounting year is called opening stock whereas, stock at the end of the accounting year is called closing stock.

A debit denotes:
(i) In case of a person, that he has received either cash or any goods or service.
(ii) In case of goods or assets, that the stock and/or value of such goods or assets has increased.
(iii) In case of nominal accounts, that the firm has enjoyed some benefit or service or has lost money or has incurred some expense.
From another point of view a debit denotes increase in assets, decrease in liabilities and capital and increase in expenses/losses.
A credit denotes:
(i) In case of a person, that he has given either cash or any goods or services.
(ii) In case of goods or assets, that the stock and/or value of such goods or asset has decreased.
(iii) In case of nominal account, that the firm has made a gain or has earned income.
From another point of view, a credit denotes decrease in assets, increase in liability and capital and increase in income.

Transfer Voucher: Transfer voucher are used to record non-cash transactions, like, charging depreciations, goods returned by a customer, goods returned to a supplier, adjustment entries, etc.

According to this principle, the cost or expenses are recognised when these are actually used to generate revenue. Thus, the cost principle is closely related with the revenue principle. While recognising expenses, following points should be kept in mind:
(i) Only that part of cost should be recognised which is directly associated with revenue generated. For example, cost of goods sold is always associated with generating revenue, i.e., sales.
(ii) Some expenses are not directly related with the revenue generated but are associated with the current accounting period. These are recognised in the same accounting period. For example, salaries of the office staff, rent paid, depreciation, etc.
(iii) Costs which do not provide clear future benefits are recognised immediately. For example, loss of goods by fire, etc.

Following are the characteristics of the accounting:
(i) Economic events: Accounting requires events to be expressed in terms of money. Transactions should involve transfer or exchange of monetary value between the business entity and outsiders.
(ii) Identification, measurement, recording and communication : Accounting is a process of identifying the transactions to be recorded, quantifying the transactions into financial terms, recording the transactions in a systematic manner and communicating the desired information to various interested groups.
(iii) Users of information : Accounting is complete when information is communicated to various groups interested in the functioning of business entity.