Accounting Tools

JANUARY 19, 2024

Derecognition is the removal of a previously recognized financial asset or financial liability from an entity's balance sheet. If the risks and rewards of ownership have not passed to the buyer, then the selling entity must still recognize the entire financial asset and treat any consideration received as a liability.

Accounting 40

Accounting Accounting 40

Accounting Tools

DECEMBER 17, 2023

Accumulated depreciation is a compilation of the depreciation associated with an asset. When the asset is sold other otherwise disposed of, you should remove the accumulated depreciation at the same time. Here are several cases in which the elimination of accumulated depreciation would be warranted: The sale of an asset.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

NOVEMBER 2, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What are the Causes of Depreciation? Depreciation is a ratable reduction in the carrying amount of a fixed asset. Wear and Tear Any asset will gradually break down over a certain usage period, as parts wear out and need to be replaced.

Auditing 75

Auditing Accounting Accounting 75

Accounting Tools

AUGUST 4, 2023

Related Courses Accounting for Intangible Assets Fixed Asset Accounting How to Audit Fixed Assets How to Account for Fixed Assets A fixed asset is an item having a useful life that spans multiple reporting periods, and whose cost exceeds a certain minimum limit (called the capitalization limit ).

Accounting 76

Accounting Accounting Accounts Payable Accounts Payable 76

Accounting Tools

JULY 16, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets How to Account for a Fixed Asset Disposal There are two scenarios under which you may dispose of a fixed asset. In this case, reverse any accumulated depreciation and reverse the original asset cost.

Accounting 40

Accounting Accounting Auditing 40

Accounting Tools

FEBRUARY 16, 2024

The intent of these latter measurements is to examine the efficiency with which management can produce profits, in comparison to the amount of equity or assets at their disposal. This is used to determine the proportion of sales still available after all variable expenses to pay for fixed costs and generate a profit.

Accruals 75

Accruals Financial Statements Accounts Receivable Accounts Receivable 75

Accounting Tools

JANUARY 13, 2024

Depreciation is the systematic reduction of the recorded cost of a fixed asset. Examples of fixed assets that can be depreciated are buildings, furniture, and office equipment. The net effect of depreciation is a gradual decline in the reported carrying amount of fixed assets on the balance sheet.

Accounting 40

Accounting Accounting Auditing Tax 40

Accounting Tools

JULY 8, 2023

Related Courses Accountants’ Guidebook Bookkeeping Guidebook The Balance Sheet What are Contra Accounts? A contra account offsets the balance in another, related account with which it is paired. Contra accounts appear in the financial statements directly below their paired accounts.

Accounting 75

Accounting Accounting General Ledger Accounts Receivable 75

Accounting Tools

JULY 16, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets To calculate a gain or loss on the sale of an asset , compare the cash received to the carrying value of the asset. Subtract this carrying amount from the sale price of the asset. If the remainder is positive, it is a gain.

Reconciling 72

Reconciling Auditing Accounting Accounting 72

Accounting Tools

NOVEMBER 4, 2023

Related Courses Fixed Asset Accounting Fixed Asset Controls How to Audit Fixed Assets What is a Ghost Asset? A ghost asset is any fixed asset that cannot be accounted for, because it is not physically present within the company or has been rendered unusable.

Auditing 40

Auditing Tax 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

AUGUST 23, 2023

Principal Accountabilities Create and monitor a system of controls, procedures, and forms for the recordation of fixed assets. Recommend to management any updates to accounting policies related to fixed assets. Assign tag numbers to fixed assets. Calculate depreciation for all fixed assets.

General Ledger 40

General Ledger Accounting Accounting Reconciling 40

Accounting Tools

NOVEMBER 4, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is a Basket Purchase? A basket purchase is the acquisition of a number of assets as a group, in a single purchase transaction. To do so, allocate the purchase price amongst the assets based on their relative fair values.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JUNE 14, 2023

A financial statement review is a service under which the accountant obtains limited assurance that there are no material modifications that need to be made to an entity's financial statements for them to be in conformity with the applicable accounting framework (such as GAAP or IFRS ). Are cash accounts being reconciled?

Financial Statements 75

Financial Statements Auditing Accruals Financial Reporting 75

Accounting Tools

JULY 15, 2023

Related Courses Capital Budgeting Fixed Asset Accounting What is Functional Obsolescence? Functional obsolescence is the impaired usage of an asset because its design is outdated and it can no longer be updated to handle current requirements.

Budgeting 40

Budgeting Computation Accounting Accounting 40

Accounting Tools

JUNE 9, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets The Interpretation of Financial Statements What is Net Fixed Assets? Net fixed assets is the aggregation of all assets , contra assets , and liabilities related to a company's fixed assets.

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

OCTOBER 6, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is Depreciation? Depreciation is a planned, gradual reduction in the recorded value of an asset over its useful life by charging it to expense. Overview of Depreciation The Purpose of Depreciation Which Assets are Not Depreciated

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JULY 21, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets Equipment is not considered a current asset. Instead, it is classified as a long-term asset. Equipment is not considered a current asset even when its cost falls below the capitalization threshold of a business.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

OCTOBER 27, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is Composite Depreciation? Composite depreciation is the application of a single straight-line depreciation rate and average useful life to the calculation of depreciation for a group of disparate fixed assets.

Record Keeping 40

Record Keeping Accounting Software Auditing Accounting 40

Accounting Tools

MARCH 19, 2024

Asset Recognition Procedure One of the areas in which a procedure can be quite useful is for the initial recognition of a fixed asset in the accounting system , since this is a relatively complicated transaction. The procedure for completing the asset recognition process is outlined below: Determine base unit.

General Ledger 40

General Ledger Auditing Computation Accounting Software 40

Accounting Tools

JUNE 11, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is Return on Total Assets? The return on total assets compares the earnings of a business to the total assets invested in it. Example of Return on Total Assets ABC International reports net profits of $100,000.

Financial Statements 75

Financial Statements Tax Accounting Accounting 75

Accounting Tools

JULY 21, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets How to Account for an Impaired Fixed Asset An asset impairment arises when there is a sudden drop in the fair value of an asset below its recorded cost. There is a significant decrease in the asset’s market price.

Accounting 40

Accounting Accounting Auditing 40

Accounting Tools

NOVEMBER 7, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets The essential depreciation calculation is to subtract the salvage value from an asset to arrive at the amount that can be depreciated. Many assets have no salvage value associated with them. Calculate Depreciation Calculate depreciation.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

OCTOBER 26, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is the Mid-Quarter Convention? The mid-quarter convention states that a business acquiring fixed assets in a reporting quarter should account for them as though they were acquired at the mid-point of the quarter.

Auditing 40

Auditing Tax Accounting Accounting 40

Accounting Tools

JUNE 7, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is Accelerated Depreciation? Accelerated depreciation is the depreciation of fixed assets at a faster rate early in their useful lives. For an asset with a useful life of four years, the calculation would be 4+3+2+1 = 10.

Financial Analysis 75

Financial Analysis Record Keeping Tax Auditing 75

Accounting Tools

DECEMBER 22, 2023

Net worth is the difference between the assets and liabilities of a person or business. Net Worth for a Business The net worth for a business is the total amount of all assets minus all liabilities, as stated in the balance sheet. Net Worth for an Individual The net worth for an individual is total assets minus total liabilities.

Accounts Payable 40

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 40

Accounting Tools

JUNE 12, 2023

Audits have become increasingly common as the complexity of the two primary accounting frameworks , Generally Accepted Accounting Principles and International Financial Reporting Standards , have increased, and because there have been an ongoing series of disclosures of fraudulent reporting by major companies. Accounts receivable.

Financial Statements 76

Financial Statements Auditing General Ledger Bank Reconciliation 76

Accounting Tools

OCTOBER 28, 2023

It contains a mix of fixed expenses and variable expenses. This includes all non-operating expenses , such as financing expenses and gains or losses on the disposal of assets. All other costs, which should be fixed costs, are aggregated into a block that is positioned below the contribution margin line. Gross margin line.

Accounting 40

Accounting Accounting 40

Accounting Tools

SEPTEMBER 21, 2023

Match to the fixed asset disposal report to ensure that assets are being replaced. Update the depreciation expense in the model, based on the fixed asset disposal and capital budget request information already received. Verify that payroll tax rates in the model are updated for the budget year.

Budgeting 40

Budgeting Payroll Data Entry Financial Software 40

Accounting Tools

MAY 16, 2024

Related AccountingTools Courses Accounting Controls Guidebook How to Audit Inventory Inventory Management Inventory Control Best Practices Some of the more common areas in which to exercise inventory control are noted below, along with tips on how to do so. An advantage is that the related accounting is simple.

Record Keeping 75

Record Keeping Data Entry Reconciling Collections 75

Jetpack Workflow

FEBRUARY 16, 2023

Does your accounting firm have a policies and procedures manual for your business or your clients? There are bookkeeping and accounting business owners who put off assembling a manual and wing it instead. A comprehensive accounting policy and procedure manual accomplishes that and benefits your firm in other ways.

General Ledger 52

General Ledger Accounting Accounting Budgeting 52

Accounting Tools

JUNE 19, 2023

Some questions may need to be added for an industry-specific acquisition, while far fewer will be needed for an asset acquisition. This is a particular problem in specialized service industries, such as investment management, consulting, and accounting services. Target Company Due Diligence Checklist Why Selling?

Financial Statements 73

Financial Statements Auditing Tax Accounts Payable 73