E-Learning

E-Learning

E-learning is a learning environment which uses information and communication technologies (ICT's) as a platform for teaching and learning activities. It has been defined as "pedagogy empowered by technology", though 'digital technology' is more accurate. Note that, due to the difference in terms of institutional goals, higher education and the industry have very different ideas about what e-learning is and how e-learning can be/should be used. E-learning has its root in distance learning and is part of the revolution brought by the new media: the Web. Educators and trainers soon found the potentials to advance learning at the advent of the new Web technologies. The advocates of e-learning voice for the breakdown of barriers to learning (especially for adult learners in higher education) such as the limitations in time and distance. Research on media comparison "proves" that there is no difference in the learning outcome of e-learning from traditional face-to-face instruction. Over time, more and more instructors/institutions are incorporating e-learning components in the practice of instruction in higher education as a way of facilitating learning

In accounting and bookkeeping, a capital account is one of the general ledger accounts used to record 1) the amounts that were paid in to the company by an investor, and 2) the cumulative amount of the company's earnings minus the cumulative distributions to the owners. The balances of the capital accounts are reported in the owner's equity, partners' equity, or stockholders' equity section of the balance sheet.

In a corporation the capital accounts include :


In a sole proprietorship (such as one owned by Amy Fox) the capital accounts include :

The total of the balances in the capital accounts must be equal to the reported total of the company's assets minus its liabilities. Because of the historical cost principle and other accounting principles the total amount reported in the capital accounts will not indicate the company's market value or net worth.
Here are eight suggestions on how to study accounting :
A revenue expenditure is a cost that is expensed in the accounting year in which it is incurred. In other words, the cost will be matched with the revenues of the accounting year in which the expenditure took place. (This is in contrast to a capital expenditure in which the cost is deferred to the balance sheet and is then expensed over several accounting years.)
Revenue expenditures are often discussed with costs spent on fixed assets after they have been placed in service. For example, the amount spent each year to keep an ice cream's store's equipment working efficiently is a revenue expenditure. Also, the cost to repair the equipment will be a revenue expenditure. In both of these situations, the amounts spent will be debited to Repairs and Maintenance Expense and will be matched with the revenues on the current year's income statement.
On the other hand, if the ice cream store incurs a large cost to improve the equipment (to make it more than it had been) and/or to extend the equipment's useful life, the amount spent is considered to be a capital expenditure. As such, the amount is initially deferred to the balance sheet (capitalized) and will be expensed over the current and future years of the equipment's useful life.
Depreciation expense is the amount of depreciation that is reported on the income statement. In other words, it is the amount that pertains only to the period of time indicated in the heading of the income statement.

Accumulated depreciation is the total amount of depreciation that has been taken on a company's assets up to the date of the balance sheet. Accumulated depreciation is also the title of the contra asset account reported in the property, plant and equipment section of the balance sheet. The accumulated depreciation for an individual asset is subtracted from the asset's cost in determining the asset's carrying value or book value.

To illustrate, let's assume that a retailer purchases new display racks at a cost of RS84,000. This asset is estimated to have a useful life of 7 years (84 months), no salvage value, and will be depreciated using the straight-line depreciation method. Therefore, during each month of the asset's life the retailer will report depreciation expense of RS1,000. However, the accumulated depreciation will be reported on the balance sheet at RS1,000 after the first month, RS2,000 after the second month, RS3,000 after the third month, and so on until it reachesRS84,000 at the end of 84 months.

Assuming a manufacturer purchases manufacturing equipment for RS84,000 with the same life and salvage value, the RS1,000 of monthly depreciation will be part of manufacturing overhead (instead of being reported directly on the income statement as depreciation expense). As part of manufacturing overhead it will be allocated to the products manufactured. When the products are sold, their production costs (which include their allocated share of depreciation and other manufacturing overhead costs) will be reported on the income statement as the cost of goods sold. The accumulated depreciation will be reported on the balance sheet just as it was for the retailer.
Some people intend for the terms income and profit to have the same meaning. For example, the income statement was commonly referred to as the profit and loss (P&L) statement. When a company is profitable, we mean that the company has a positive net income.

To aid in understanding these terms, the word "net" is often added. Hence, we often see the terms net income and net profit. This communicates that the amounts are the remainder after expenses have been deducted. For example, a company's profit margin is often listed as the net profit margin (which is defined as the company's net income divided by its net sales). The word "net" also helps to distinguish a company's net profit from its gross profit, and its net profit margin from its gross profit margin.

Some people use the term income to mean revenues. For example, a bank or an individual will often refer to the interest they earn on bond investments as interest income or investment income. A retailer will refer to the sales of merchandise as revenues, but the revenues from secondary activities will be reported as other income or nonoperating income.
The operating cycle is also known as the cash conversion cycle. In the context of a manufacturer the operating cycle has been described as the amount of time that it takes for a manufacturer's cash to be converted into products plus the time it takes for those products to be sold and turned back into cash. In other words, the manufacturer's operating cycle involves :

Some calculate the operating cycle to be the sum of :

The above sum is sometimes reduced by the number of days in the credit terms of the accounts payable.
The operating cycle has importance in classifying current assets and current liabilities. While most manufacturers have operating cycles of several months, a few industries require very long processing times. This could result in an operating cycle that is longer than one year. To accommodate those industries, the accountants' definitions of current assets and current liabilities include the following phrase: ...within one year or within the operating cycle, whichever is longer.
A general ledger is a grouping of perhaps hundreds of accounts that are used to sort and store information from a company's business transactions. The general ledger is organized as follows :

Under the double entry system of accounting and bookkeeping, every business transaction will have the amount of debits equal to the amount of credits. Hence, the general ledger is expected to have its debit amounts equal to its credit amounts.
In a manual accounting or bookkeeping system, the general ledger was a "book" with a separate page or ledger sheet for each account. (When a significant amount of detailed information was needed for an account such as Accounts Receivable, a subsidiary ledger was used.)
In a computerized system, the general ledger will be an electronic file of all the needed accounts. This also allows for the electronic preparation of the company's financial statements.
Gross sales are the amounts a company earned and recorded from the sales of its products (and perhaps its services). The amounts originate from the company's sales invoices but the total will be adjusted to the accrual basis at the end of each accounting period.

The gross sales amounts from the sales invoices are recorded in a general ledger account such as Sales. (Any sales returns, sales allowances, and sales discounts should be recorded in separate contra revenue accounts in order for management to see the magnitude of these items.)

Gross sales is also defined as the sales revenues before deducting the sales returns, sales allowances, and sales discounts. (Gross sales minus sales returns, sales allowances, and sales discounts is the definition of net sales.)

A review of the income statement for 19 publicly-traded corporations revealed that only the net amount of sales (or revenues) appeared on the face of the income statements.
Debits and credits are terms used in accounting and bookkeeping (and have been used for centuries). They are a key part of the double entry system, which means that every business transaction will affect a minimum of two accounts. One of the accounts will receive a debit entry and another account will receive a credit entry. The amounts entered as debits must be equal to the amounts entered as credits.

To illustrate, let's assume that a company borrows RS10,000 from its bank. The company will record a debit of RS10,000 in its Cash account, and a credit of RS10,000 in its Notes Payable account. A cash sale of RS300 will be recorded with a debit of RS300 in the Cash account and a credit of RS300 in the Sales account.

You should think of a debit as an entry on the left side of an account, and a credit as an entry on the right side of another account. Accountants often use T-accounts to visualize the debit and credit effects on the accounts' balances.

It may take some time to learn which general ledger accounts will be debited and credited, but here are some general rules :

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