Accounting

Unpresented checks, therefore, cause a difference between the balance in company’s accounting record and the balance as per bank statement for the period concerned. A check previously recorded as part of a deposit may bounce because there are not sufficient funds in the issuer’s checking account. The Vector Management Group’s bank statement includes an NSF check for $345 from Hosta, Inc. Banks often require customers to pay monthly account fees, check printing fees, safe‐depos […]

An accrued expense is recognized on the books before it has been billed or paid. This solution modernizes the journals experience by providing accuracy and control with improved efficiency at every step of the process. It replaces specific manual journal tasks with targeted automation. If you would like to watch another video about journal entries, click Journal Entries.
Both of these accounts are asset accounts, so the overall accounting equation didn’t change. Total assets increased and […]

Revenues realized through secondary, non-core business activities are often referred to as non-operating recurring revenues. Though calculations involve simple additions and subtractions, the order in which the various entries appear in the statement and their relations often gets repetitive and complicated. IFRS mandates adjustment of many assets to a market value, which adjustments would be/ are included in the calculation of accounting income. Based on income statements, management can make […]

The process is simple, but finding a charity to cooperate is difficult since there will be no cash value as soon as the 1st mortgage forecloses. In some cases, you may write off the money a customer owed you in your books only for them to come back and pay you. If a customer ends up paying (e.g., a collection agency collects their payment) and you have already written off the money they owed, you need to reverse the account.
They can do this by looking at the total sales amounts for each year, […]

Another supervisor must be added, so between volumes of 40,001 and 65,000 units two supervisors must be hired. After the company starts producing more than 65,000 units, two supervisors will not be able to keep up with the production volume. Are greater than the incremental cost, the necessary investment of incremental cost is made by the management. However, if the returns fall below the incremental cost, then the activity level is not increased. As per the applicable threshold, the step-cost […]

Auditors using the relationship prefer to evaluate these judgment risks explicitly. Auditors know that an inventory sample is not necessarily identical to the entire population. The actual population is always going to deviate somewhat from the result of the samples. The auditors can decide how large of an allowance they can have based on their risk tolerance. Inventory accounts are the culprits for misstatements, so most auditors will choose a smaller allowance.

Financial statements are prepa […]