Accounting Tools

NOVEMBER 2, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is Backflush Accounting? Backflush accounting is when you wait until the manufacture of a product has been completed, and then record all of the related issuances of inventory from stock that were required to create the product.

Accounting 75

Accounting Accounting Billing Computation 75

Accounting Tools

APRIL 17, 2024

What is the Purchase Accounting Adjustment? Purchase accounting is the practice of revising the assets and liabilities of an acquired business to their fair values at the time of the acquisition. This treatment is required under the various accounting frameworks , such as GAAP and IFRS.

Accounting 40

Accounting Accounting Financial Statements CPA 40

Accounting Tools

OCTOBER 1, 2023

Related Courses Accounting for Inventory Ending inventory is a key requirement when a business is closing its books. Thus, without an accurate ending inventory figure, it is impossible to determine a firm’s profitability. It is needed to derive the cost of goods sold , which in turn is needed to calculate profits.

Accounting 40

Accounting Accounting 40

Accounting Tools

MARCH 5, 2024

Shrinkage is the difference between the book and actual amount of inventory. In the retail industry, the amount of inventory shrinkage represents a major reduction in profitability , so a number of methods are used to combat it, including security cameras, merchandise tagging, and security guards.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

AUGUST 30, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is the Double Extension Method? The double extension method is used to obtain a price index from a representative sample of the items in stock. This index is used in the calculation of dollar value LIFO.

Auditing 40

Auditing Accounting Accounting 40

Counto

MARCH 27, 2024

Consider diversifying your sourcing channels to mitigate risks and ensure a steady supply of inventory. Take into account listing fees, selling fees, payment processing fees, and additional costs like fulfilment and inventory fees. Experience a smarter way to outsource your ecommerce accounting with confidence.

Customer Service 52

Customer Service Budgeting Tax Accounting 52

Accounting Tools

JANUARY 30, 2024

The first in, still here term refers to very slow-moving inventory. The acronym (FISH) is a take-off on the FIFO and LIFO acronyms that describe inventory cost layering systems. When a business has a large amount of FISH inventory, this means there is a high risk of obsolete inventory that must be written off.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

SEPTEMBER 7, 2023

Related Courses The Statement of Cash Flows What is the Cash Flow Statement Indirect Method? The indirect method for the preparation of the statement of cash flows involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.

Financial Statements 75

Financial Statements Accounts Receivable Accounts Receivable Account Receivables 75

Accounting Tools

SEPTEMBER 6, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is the First-in, First-out Method? The first in, first out (FIFO) method of inventory valuation is a cost flow assumption that the first goods purchased are also the first goods sold.

Financial Reporting 40

Financial Reporting Auditing Accounting Accounting 40

Accounting Tools

SEPTEMBER 8, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is a LIFO Reserve? The LIFO reserve is the difference between the cost of inventory calculated using the FIFO method and using the LIFO method. Instead, a business could disclose the “excess of FIFO over LIFO cost”.

Auditing 40

Auditing Tax Accounting Accounting 40

Accounting Tools

JULY 14, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is Net Realizable Value? It is used in the determination of the lower of cost or market for on-hand inventory items. Further, writing down inventory prevents a business from carrying forward any losses for recognition in a future period.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Financial Statements 75

Accounting Tools

OCTOBER 6, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is the Dollar-Value LIFO Method? The dollar-value LIFO method is a variation on the last in, first out cost layering concept. Instead, layers are compiled for pools of inventory items.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

OCTOBER 28, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is the Moving Average Inventory Method? Under the moving average inventory method, the average cost of each inventory item in stock is re-calculated after every inventory purchase. after a purchase on April 20.

Computation 40

Computation Auditing Accounting Accounting 40

Accounting Tools

OCTOBER 9, 2023

Related Courses Closing the Books The Soft Close The Year-End Close How to Prepare Financial Statements The preparation of financial statements involves the process of aggregating accounting information into a standardized set of financials. Step 7: Post Account Balances Post all subsidiary ledger balances to the general ledger.

Financial Statements 75

Financial Statements General Ledger Bank Reconciliation Invoicing 75

Accounting Tools

OCTOBER 24, 2023

The following are considered to be efficiency ratios: Accounts Receivable Turnover Accounts receivable turnover is calculated as credit sales divided by average accounts receivable. Inventory Turnover Inventory turnover is calculated as the cost of goods sold divided by average inventory.

Accounts Payable 75

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 75

Accounting Tools

SEPTEMBER 6, 2023

Related Courses Accounting for Inventory How to Audit Inventory The Differences Between FIFO and LIFO FIFO and LIFO are cost layering methods used to value the cost of goods sold and ending inventory. Why use one method over the other? IFRS does not all the use of the LIFO method at all.

Record Keeping 40

Record Keeping Accounting Accounting Financial Analysis 40

Accounting Tools

MARCH 29, 2024

What is the Percentage-of-Sales Method? The percentage-of-sales method is used to develop a budgeted set of financial statements. The approach can also be used to forecast some balance sheet items, such as accounts receivable , accounts payable , and inventory. Estimate sales for the forecast period.

Budgeting 40

Budgeting Financial Statements Accounts Payable Accounts Payable 40

Accounting Tools

JUNE 19, 2023

Related Courses Accounting for Inventory How to Audit Inventory What are the Accounting Inventory Methods? The four main ways to account for inventory are the specific identification, first in first out, last in first out, and weighted average methods.

Accounting 40

Accounting Accounting Computation Financial Reporting 40

Accounting Tools

JUNE 8, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is the Gross Profit Method? The gross profit method estimates the amount of ending inventory in a reporting period. This is of use for interim periods between physical inventory counts. Its sales during March were $500,000.

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

JUNE 16, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals How to Audit Inventory What are Indirect Materials? Indirect materials are not usually tracked through a formal inventory record keeping system. They are charged to expense as incurred. They are charged to expense as incurred.

Record Keeping 40

Record Keeping Billing Auditing Cost Accounting 40

Accounting Tools

NOVEMBER 3, 2023

Related Courses Cost Accounting Fundamentals What is the Production Volume Variance? Thus, the designation of the production volume variance as being favorable or unfavorable is only from the accounting perspective, where a lower per-unit cost is considered better.

Budgeting 75

Budgeting Cost Accounting Accounting Accounting 75

Accounting Tools

JULY 15, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals How to Audit Inventory What is COGS? At the least accurate level, it can be a simple calculation of adding purchases to beginning inventory and then subtracting ending inventory , though that approach requires an accurate ending inventory count.

Payroll 75

Payroll Auditing Cost Accounting Tax 75

Outsourced Bookeeping

MAY 22, 2023

Insufficient bookkeeping methods are a significant factor in these mishaps. This article delves into the causes behind the failure of retail businesses and offers insightful accounting advice to enable them to not just endure but thrive amidst intense market competition.

Outsourced Bookkeeping 59

Outsourced Bookkeeping Budgeting Accounting Accounting 59

Accounting Tools

AUGUST 4, 2023

Related Courses Accounting for Inventory How to Audit Inventory Inventory Management What is Perpetual LIFO? Under LIFO, you assume that the last item entering inventory is the first one to be used. In a periodic LIFO system, inventory records are only updated at the end of a reporting period.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JULY 18, 2023

When goods or services are sold on credit, debit accounts receivable and credit sales. If a sale is for cash, then the debit is to the cash account instead of the accounts receivable account. Allowance for doubtful accounts entry. Example Expense Journal Entries Accounts payable entry. Payroll entry.

Petty cash 75

Petty cash Accounts Payable Accounts Payable Payroll 75

Accounting Tools

JUNE 12, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is the Average Cost Method? The concept is most commonly applied to inventory , but can also be used with fixed assets. It is somewhat easier to engage in reporting fraud when the FIFO or LIFO methods are used.

Cost Accounting 40

Cost Accounting Financial Statements Budgeting Accounting 40

Accounting Tools

SEPTEMBER 25, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Extended Normal Costing? The extended normal costing method is most commonly used in situations where it is difficult to assign actual costs to products.

Budgeting 40

Budgeting Cost Accounting Accounting Accounting 40

Accounting Tools

JUNE 14, 2023

Related Courses Accounting for Inventory How to Audit Inventory How to Conduct an Audit Engagement What are Inventory Audit Procedures? If your company records its inventory as an asset and it undergoes an annual audit , then the auditors will be conducting an audit of your inventory.

Auditing 75

Auditing General Ledger Reconciling Invoicing 75

Accounting Tools

JUNE 7, 2023

Indirect Cash Flow Method The most commonly used format for the statement of cash flows is called the indirect method. The general layout of an indirect method statement of cash flows is shown below, along with an explanation of the source of the information in the statement.

Financial Statements 75

Financial Statements Payroll Accounts Receivable Accounts Receivable 75

Accounting Tools

OCTOBER 28, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is Next In, First Out? This concept is not allowed under any of the accounting frameworks (such as GAAP and IFRS ), so it cannot be used in the preparation of financial statements that are supposed to be constructed under an accounting framework.

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

OCTOBER 11, 2023

Related Courses The Interpretation of Financial Statements The Statement of Cash Flows What is the Direct Method? Under the direct method, actual cash flows are presented for items that affect cash flow. What is the Indirect Method? Either method may be used by a reporting entity.

General Ledger 40

General Ledger Cash Collection Accruals Financial Statements 40

Accounting Tools

JUNE 7, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals What is a Cost Allocation? Cost allocation is used for financial reporting purposes, to spread costs among departments or inventory items. Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects.

Cost Accounting 75

Cost Accounting Financial Reporting Tax Accounting 75

Accounting Tools

OCTOBER 11, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Normal Costing? Standard costing is the practice of substituting an expected cost for an actual cost in the accounting records. Standard costing is the practice of substituting an expected cost for an actual cost in the accounting records.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

MARCH 20, 2024

What are Accounting Policies? Accounting policies are the rules used by an entity to ensure that transactions are recorded properly and financial statements produced correctly. These policies ensure that accounting activities are handled consistently over time.

Financial Statements 40

Financial Statements Accounting Accounting Bookkeeping 40

Accounting Tools

MARCH 5, 2024

An allowance is pared with and offsets another account to show how expected losses will reduce the balance of the paired account. For example, a company creates an allowance for doubtful accounts that is paired with and offsets its trade accounts receivable account.

Bookkeeping 40

Bookkeeping Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

JUNE 19, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Equivalent Units of Production? Equivalent units of production is a term applied to the work-in-process inventory at the end of an accounting period. The simpler of the two methods is the weighted average method.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

MAY 19, 2023

Related Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals What is an Applied Cost? This allocation is required by most accounting frameworks (such as GAAP and IFRS ) to ensure that the cost of all inventory is fully loaded with overhead costs.

Cost Accounting 40

Cost Accounting Accounting Accounting 40