Catégorie : Bookkeeping

Direct costs of production are recorded by factoring them into product costs, while period costs are recorded as expenses. By analogy, a manufacturer pours money into direct materials, direct labor, and manufacturing overhead. The product costs are sometime named as inventoriable costs because they are initially assigned to inventory and expensed only when the inventory…

The other essential definitions to consider are net income, gross income, withholdings (often simply referred to as taxes), deductions, and garnishments. You can also learn about personal finance topics with Finance for Everyone Specialization by McMaster University on Coursera. The course can help you make financial decisions and understand financial topics like markets and debt.…

The cash method recognizes revenue when cash is received from clients, and expenses are recorded when they’re paid. Although the cash method might be straightforward, it can delay recording revenue and expenses until the money is earned or paid out. From an optics perspective, this can make a company’s revenue and profitability appear inconsistent to…

By transferring the balances of temporary accounts to permanent ones, closing entries ensure that each accounting period starts afresh, free from the residual effects of the previous period. This clean slate is crucial for accurate financial analysis and decision-making, as it allows stakeholders to compare performance across different periods without the noise of past transactions.…

Even change in the cash position due to activities like acquisition, merger etc, will also be considered in this. Cash flow from investing activities shows how a company is allocating cash for the long term. While this signals a negative cash flow from investing activities in the short term, it may help the company generate…

Create robust systems for protecting funds, donor data, and organizational assets. This ongoing oversight helps prevent the accidental misuse of restricted funds and ensures compliance with donor requirements. They try to keep program expenses high while managing necessary overhead costs. You have to juggle restricted grants, oversee donor funds, and ensure that every dollar aligns…

When it comes to the type of payments clients prefer, credit card was the most favored option, accounting for almost half of all respondents across all age groups. In a world where most people are more pressed than ever for time, making the trip to the post office or law firm can feel unnecessary. It…

Accurately forecasting depreciation patterns and their effect on salvage value is challenging. Currency fluctuations can have a significant impact on the salvage value of assets. For example, if the exchange rate between two currencies changes, the value of an asset in one currency may decrease or increase. Example of Residual Value Calculation for a Car…