Accounting Tools

OCTOBER 20, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals What is the Reciprocal Method? The reciprocal method uses simultaneous equations to allocate the costs incurred by service departments to other departments; allocations are also made between the service departments.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

FEBRUARY 11, 2024

It is acceptable under the generally accepted accounting principles and international financial reporting standards accounting frameworks to use normal costing to derive the cost of a product for financial reporting purposes. What is Normal Costing? Normal costing is used to derive the cost of a product.

Financial Reporting 74

Financial Reporting Cost Accounting Budgeting Accounting 74

Accounting Tools

JUNE 20, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets Depreciation is a fixed cost , because it recurs in the same amount per period throughout the useful life of an asset. Related Articles Accelerated Depreciation Depreciation Methods How to Calculate Depreciation Is Depreciation a Direct Cost or Indirect Cost?

Auditing 75

Auditing Accounting Accounting 75

Accounting Tools

AUGUST 29, 2023

Related Courses The Balance Sheet What is the Account Form? The account form refers to a two-column format for the presentation of the balance sheet. In this format, assets are listed in the first column, while liabilities and equity accounts are listed in the second column.

Accounting 40

Accounting Accounting 40

Accounting Tools

SEPTEMBER 7, 2023

The retained earnings formula is a calculation that derives the balance in the retained earnings account as of the end of a reporting period. It is also possible that a change in accounting principle will require that a company restate its beginning retained earnings balance to account for retroactive changes to its financial statements.

Financial Statements 75

Financial Statements Accounting Accounting 75

Accounting Tools

JULY 27, 2023

Related Courses Bookkeeping Guidebook Revenue Recognition Sales are recorded as a credit because the offsetting side of the journal entry is a debit - usually to either the cash or accounts receivable account. In essence, the debit increases one of the asset accounts, while the credit increases shareholders’ equity.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Bookkeeping 40

Accounting Tools

NOVEMBER 4, 2023

Related Courses Capital Budgeting Fixed Asset Accounting Fixed Asset Controls What are Capital Goods? Accounting for Capital Goods Capital goods are not charged to expense when acquired. This approach is used to roughly equate the recognition of expenses for capital goods with the revenue that they generate over time.

Budgeting 40

Budgeting Collections Accounting Accounting 40

Accounting Tools

AUGUST 5, 2023

This can cause significant problems, especially when company managers mistakenly equate profits with cash, and suddenly find themselves out of cash and the company in bankruptcy. Similarly, the recordation of an expense does not necessarily equate to the disbursement cash. There are several reasons for this problem, as noted below.

Accruals 40

Accruals Financial Statements Payroll Tax 40

Accounting Tools

FEBRUARY 8, 2024

Thus, a 5% dividend on preferred shares that have a $100 par value equates to a $5 dividend. Cumulative preferred stock is an equity instrument that pays a fixed dividend on a predetermined schedule, and prior to any distributions to the holders of a company's common stock.

Financial Statements 40

Financial Statements Corporate Finance Accounting Accounting 40

Accounting Tools

SEPTEMBER 7, 2023

A classified balance sheet presents information about an entity's assets , liabilities , and shareholders' equity that is aggregated (or "classified") into subcategories of accounts. Instead, a business can choose which accounts will be included in each balance sheet line item. There is no standardized classification system.

Computation 75

Computation Financial Statements Tax Accounting 75

Accounting Tools

OCTOBER 27, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Underapplied Overhead? This situation arises when the standard allocation amount per unit of production does not equate to the actual amount of overhead costs incurred in a reporting period.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

JULY 24, 2023

However, it does not reveal the amount of assets and liabilities required to generate a profit, and its results do not necessarily equate to the cash flows generated by the business. Also, the accuracy of this document can be suspect when the cash basis of accounting is used.

Financial Statements 75

Financial Statements Accruals Auditing Accounting 75

Accounting Tools

FEBRUARY 13, 2024

The credit policy and related payment terms, since looser credit equates to a longer interval before customers pay, which extends the operating cycle. Related Articles The Accounting Cycle The Asset Conversion Cycle Types of Transaction Cycles in Accounting What is the Operating Cycle?

Accounting 40

Accounting Accounting 40

Spenmo

NOVEMBER 8, 2022

In this article, we break down the know-how. We also want to leave you with this concept: Assets (A) = Liabilities (L) + Equity (E) As you can see, this indicates that your total assets would have to equate to your total liabilities and equity in the accounting period for your balance sheet. So, how do you write a balance sheet?

Account Reconciliation 52

Account Reconciliation Financial Statements XERO Accounts Payable 52

Accounting Tools

DECEMBER 22, 2023

A company can increase its net worth not only by the obvious method of earning a profit, but also by avoiding distributions to shareholders (such as dividends ), since that reduces the cash balance, which is part of the assets in the net worth equation. What is Net Worth? The definitions are noted below.

Accounts Payable 40

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 40

Accounting Tools

JUNE 19, 2023

Operating profit does not necessarily equate to the cash flows generated by a business, since the accounting entries made under the accrual basis of accounting can result in operating profits being reported that are substantially different from cash flows. The interest expense and income taxes are excluded from the calculation.

Accruals 40

Accruals Financial Statements Tax Accounting 40

Accounting Tools

AUGUST 3, 2023

Related Courses Fixed Asset Accounting Fixed Asset Controls How to Audit Fixed Assets What is Depreciated Cost? Understanding Depreciated Cost The depreciated cost concept is not meant to equate to the market value of an asset. Related Articles Depreciation Methods Overview of Depreciation The Purpose of Depreciation

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JUNE 15, 2023

It is the most conservative of all the liquidity measurements, since it excludes inventory (which is included in the current ratio ) and accounts receivable (which is included in the quick ratio ). Consequently, a better measure of liquidity is the quick ratio, which includes accounts receivable in the numerator of the ratio.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Financial Statements 40

Accounting Tools

SEPTEMBER 20, 2023

The most common asset accounts are noted below, sorted by their order of liquidity. The most common asset accounts are noted below, sorted by their order of liquidity. This line item includes all checking and savings accounts, as well as coins and bills kept on hand, certificates of deposit, and Treasury bills.

General Ledger 40

General Ledger Financial Statements Billing Accounts Payable 40

Accounting Tools

NOVEMBER 8, 2023

The assets are stated at their book values , which may not equate to their market values. Certain accounts receivable and inventory items may not be collectible at all, so if these items comprise a large proportion of the asset balance, the amount of available cash could be much lower than indicated by the ratio.

General Ledger 40

General Ledger Financial Statements Collections Accounts Receivable 40

Accounting Tools

SEPTEMBER 22, 2023

Related Courses Accountants' Guidebook GAAP Guidebook How to Audit Liabilities A liability is a a legally binding obligation payable to another entity. Liabilities are a component of the accounting equation , where liabilities plus equity equals the assets appearing on an organization's balance sheet. Accrued liabilities.

Accounting 40

Accounting Accounting Accounts Payable Accounts Payable 40

Accounting Tools

JUNE 20, 2023

EBIT Does Not Match Cash The EBIT figure noted in the numerator of the formula is an accounting calculation that does not necessarily relate to the amount of cash generated. Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is the Times Interest Earned Ratio?

Financial Analysis 40

Financial Analysis Financial Statements Tax Accounting 40

Accounting Tools

SEPTEMBER 4, 2023

Related Courses Accounting for Derivatives and Hedges Corporate Cash Management Foreign Currency Accounting What is a Foreign Currency Option? A foreign currency option gives its owner the right, but not the obligation, to buy or sell currency at a certain price (known as the strike price ), either on or before a specific date.

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 12, 2023

Related Courses Accounting for Investments Corporate Finance GAAP Guidebook What is the Amortization of Discount on Bonds Payable? The amount recognized equates to the market rate of interest on the date when the bonds were sold. A business or government may issue bonds when it needs a long-term source of cash funding.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

IMA's Count Me

JULY 1, 2019

FULL EPISODE TRANSCRIPT Mitch : (00:03) Welcome to Count Me In, IMA's podcast about all things affecting the accounting and finance world. Mitch Roshong and Adam Larson here with you again and today we are going to hear all about how blockchain works and how it applies to accounting. I certainly did. That's a great question.

Accounting 40

Accounting Accounting Financial Statements Auditing 40

Future Firm

AUGUST 2, 2023

In this article, you’re going to get a ton of inspiration plus a whole bunch of tips for picking amazing accounting firm names. Choosing an accounting firm name is all about branding and how you want the outside world to perceive you. Future-Proof: Remain meaningful and relevant as your accounting firm grows.

Accounting 52

Accounting Accounting Auditing Tax 52

Nanonets

FEBRUARY 15, 2024

Procurement is a pivotal function for any business upon which the pillars of efficiency, cost management, and strategic sourcing rest. This is more than just buying; it's about acquiring goods and services in a way that optimizes value for an organization. Let’s demystify these.

Purchase Order 52

Purchase Order Invoicing Budgeting Collections 52

Accounting Tools

AUGUST 6, 2023

Related Courses Accounting for Inventory Business Ratios Guidebook Inventory Management What is Inventory Turnover? Low turnover equates to a large investment in inventory, while high turnover equates to a low investment in inventory.

Purchase Order 40

Purchase Order Budgeting Collections Accounting 40

Accounting Tools

OCTOBER 20, 2023

Related Courses Partnership Accounting Partnership Tax Guide What is a Partnership Capital Account? The partnership capital account is an equity account in the accounting records of a partnership.

Accounting 75

Accounting Accounting Tax 75

IMA's Count Me

OCTOBER 25, 2020

Contact Neta Meidav: [link] Vault: [link] FULL EPISODE TRANSCRIPT Adam: (00:05) Welcome back for episode 94 of Count Me In , IMA's podcast about all things affecting the accounting and finance world. I'm your host, Adam Larson, and today I'll be bringing you right up to a conversation between my cohost Mitch Roshong and Neta Meidav.

Collections 40

Collections Accounting Accounting 40

Accounting Tools

AUGUST 6, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is the Dual Aspect Concept? The dual aspect concept states that every business transaction requires recordation in two different accounts. The offset to the entry increases the accounts payable liability in the balance sheet.

Accruals 75

Accruals Financial Statements Bookkeeping Accounts Payable 75

IMA's Count Me

JULY 25, 2021

IMA's podcast about all things affecting the accounting and finance world. Adam Larson here with you again, and I'm pleased to introduce today's featured guest speaker Hilla Sferruzza. Hilla is the CFO of Meritage Homes and spoke with my co-host Mitch about the role of today's CFOs. Hilla (01:05): So, thanks for having me on Mitch.

Computation 40

Computation CPA Accounts Payable Accounts Payable 40

Accounting Tools

SEPTEMBER 30, 2023

The double entry system mandates that every business transaction be recorded in at least two accounts. These rules are needed to ensure that a business always keeps its accounting equation properly balanced. For example, a debit of $1,000 to an asset account may be balanced by a credit of $1,000 to a liability account.

Financial Statements 40

Financial Statements Bookkeeping Accounts Receivable Accounts Receivable 40

Accounting Tools

OCTOBER 23, 2023

Related Courses Bookkeeping Guidebook Cost Accounting Fundamentals The difference between cost and expense is that cost identifies an expenditure , while expense refers to the consumption of the item acquired. Unfortunately, cost and expense tend to be used interchangeably even within the accounting terminology.

Cost Accounting 75

Cost Accounting Bookkeeping Billing Financial Accounting 75

Accounting Tools

MAY 21, 2023

Format of the Statement of Financial Position The format of the statement of financial position follows the basic accounting equation , which states that: Assets = Liabilities + Equity This means that all asset line items are presented first, with a total that matches the totals for liabilities and equity, which are presented next.

Financial Statements 74

Financial Statements Accounts Payable Accounts Payable Financial Reporting 74

IMA's Count Me

JUNE 6, 2021

In his role, he is responsible for the blue's federal employee program, oversees the national employee benefits administration, and has overall accountability for Blue Cross Blue Shield brand management, and the associations finance, licenser, enterprise information technology, and information security areas.

Collections 40

Collections Accounting Accounting Billing 40

Nanonets

MAY 8, 2023

In this article, we will walk through answers to all these questions and more, so you can begin your business bookkeeping journey with confidence. The standard format for bookkeeping is the double-entry accounting system. The standard format for bookkeeping is the double-entry accounting system. Numbers scare some people.

Bookkeeping 52

Bookkeeping Financial Statements Accounting Software Reconciling 52