Accounting

Management may have decided to increase the staffing and technology support of the collections department, which should result in a reduction in the amount of overdue accounts receivable. General economic conditions could be impacting customer cash flows, requiring them to delay payments to their suppliers. If you need help establishing KPMs or automating essential accounts receivable collection processes, contact the professionals at Gaviti. We’ve got years of experience eliminating inef […]

It’s difficult to find a comparable transaction because most intangibles are unique . It’s also difficult to find a comparable transaction and economic cycles have an effect on these transactions. Consider an intangible valued at $10,000 and amortized over 15 years . Amortization is similar to the straight-line method of depreciation, with equal amounts of annual deductions over the life of the asset.
The 50,000 value of Company A’s goodwill was derived from a transaction. The […]

An inventory aging report is a list of the items on hand grouped by the length of time in inventory. It’s used to identify slow moving inventory plus the additional costs to store and maintain these products until they are sold. If you use accounting software, you’ve got a few options for creating the report. In the context of finance and accounting, there are two kinds of cycles which are used to measure the financial efficiency of a firm. These cycles consider parameters such as a […]

Match each of the following accounts with the appropriate description that follows. Costs related to the overall management of an organization. Using Figure 1.2 “IMA Statement of Ethical Professional Practice” as a guide, discuss your options as the accountant at Drive Write. The person who assists in preparing tax reports for governmental agencies.

Both Jorge’s boss and the CFO receive bonuses tied to the company’s profits.
The treasurer, a volunteer member of the boar […]

Depreciation is used to distribute the cost of the asset over its expected life span according to the matching principle. This matches costs to sales and therefore gives a more accurate representation of the business, but results in a temporary discrepancy between profit/loss and the cash position of the business. An adjusting journal entry occurs at the end of a reporting period to record any unrecognized income or expenses for the period.

First, the two transactions occurred over three years […]

Due to the scrap problem you really don’t know how many sandwiches you will need to make to get the correct quantity, so preproduction issuing would force you to go back and enter additional transactions for the scrap materials. The best option here is to use blind postproduction posting. All the operator needs to do is enter the good quantity and the scrap quantity and let the system calculate the rest. Backflushing is an accounting method that applies costs to production but can also be […]