Accounting Tools

MAY 21, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Journal Entry? A journal entry is used to record a business transaction in the accounting records of a business. What is Included in a Journal Entry? A footer line may also include a brief description of the reason for the entry.

General Ledger 75

General Ledger Financial Statements Accruals Payroll 75

Accounting Tools

JULY 8, 2023

The accounting process is three separate types of transactions used to record business transactions in the accounting records. The transaction types are: The first transaction type is to ensure that reversing entries from the previous period have, in fact, been reversed.

Financial Statements 75

Financial Statements Accounting Accounting General Ledger 75

Accounting Tools

DECEMBER 18, 2023

What is an Accrual? An accrual is an expense that has been recognized in the current period for which a supplier invoice has not yet been received, or revenue that has not yet been billed. When an accrual is created, it is typically with the intent of recording an expense on the income statement. What is an Under Accrual?

Accruals 40

Accruals Bookkeeping Billing Invoicing 40

Accounting Tools

JUNE 11, 2023

In place of the documentation, a journal entry is created to record an accrued expense, as well as an offsetting liability. In the absence of a journal entry, the expense would not appear at all in the entity's financial statements in the period incurred, which would result in reported profits being too high in that period.

Accruals 75

Accruals Accounts Payable Accounts Payable Invoicing 75

Accounting Tools

JANUARY 20, 2024

The concept is used under the accrual basis of accounting, but not under the cash basis of accounting. Related AccountingTools Courses Bookkeeper Education Bundle Bookkeeping Guidebook Related Articles Accruals and Deferrals (podcast) Deferral-Type Adjusting Entry The Difference Between Accruals and Deferrals

Accruals 40

Accruals Bookkeeping Accounting Accounting 40

Accounting Tools

DECEMBER 20, 2023

What is an Accounting Entry? An accounting entry is a formal record that documents a transaction. In most cases, an accounting entry is made using the double entry bookkeeping system , which requires one to make both a debit and credit entry, and which eventually leads to the creation of a complete set of financial statements.

Accounting 75

Accounting Accounting General Ledger Accruals 75

Accounting Tools

DECEMBER 10, 2023

What is the Accrual Basis of Accounting? The accrual basis of accounting is the concept of recording revenues when earned and expenses as incurred. The accrual basis of accounting is advocated under both generally accepted accounting principles ( GAAP ) and international financial reporting standards ( IFRS ).

Accruals 75

Accruals Accounting Accounting Financial Statements 75

Accounting Tools

MAY 21, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Compound Journal Entry? A compound journal entry is an accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits.

Accruals 40

Accruals Bank Reconciliation Payroll Bookkeeping 40

Accounting Tools

JUNE 20, 2023

Related Courses How to Audit Payroll Optimal Accounting for Payroll Payroll Management What are Payroll Journal Entries? Payroll journal entries are used to record the compensation paid to employees. These entries are then incorporated into an entity's financial statements through the general ledger.

Payroll 40

Payroll General Ledger Accounts Payable Accounts Payable 40