Accounting

This is because FIFO expenses the oldest costs first, which often results in revenue from the sale of inventory being matched with an outdated cost. At the beginning of the year, you have an initial inventory of products in various stages of completion or ready to be sold. During the year, you buy more inventory and sell some of the inventory. At the end of the year, you want to record the cost of the inventory you’ve sold, as an expense of doing business, which is deducted from your sale […]

As a Lender, the safest type of promissory note to use is by selecting “Secure“. In our example, the borrower has used their iPhone 7 as collateral to secure the loan with the Lender. In the event the borrower can’t pay back the loan, the Lender will keep the iPhone 7.

Is a promissory note legal without being notarized?

Generally, promissory notes do not need to be notarized. Typically, legally enforceable promissory notes must be signed by individuals and contain uncondi […]

Since no two properties are identical, before adding the sale prices of comparables, those individual prices need adjustment to compensate for differences among the comparables and subject property. For example, if the subject property has a swimming pool, increase the sale price to compensate for the pool.
If you’re running a small business, you likely have many tangible and intangible assets. And when you sell those assets or buy new ones, you should know their fair market value. Please […]

Pacioli is now known as the “Father of Accounting” because the approach he devised became the basis for modern-day accounting. Pacioli warned that you should not end a workday until your debits equal your credits. The accounting cycle is defined as a series of nine steps to collect, process, and report financial transactions.

Which side is DR and CR?

In financial accounting or bookkeeping, “Dr” (Debit) indicates the left side of a ledger account and “Cr” […]

To illustrate, assume that the company in can identify the 20 units on hand at year-end as 10 units from the August 12 purchase and 10 units from the December 21 purchase. The company computes the ending inventory as shown in; it subtracts the USD 181 ending inventory cost from the USD 690 cost of goods available for sale to obtain the USD 509 cost of goods sold. Note that you can also determine the cost of goods sold for the year by recording the cost of each unit sold.
Some types of businesse […]

The voucher authorizes the payment of the invoice in one lump-sum that will be written on the balance sheet. You can specify an account assignment at variance with the card master record for the document generation in the credit voucher. If you have not created a credit voucher for an accounting transaction, the default account assignment defined in the card master record and falling into the validity period is applied. Voucher information may be assembled into a packet, where the basic voucher […]