Category Archives: Bookkeeping

As we approach the warmer months, I’d like to take this opportunity to remind everyone of the company’s dress code policy. Ensure you familiarize yourself with the updated policy and follow the new procedures. At this time, I am asking you to review the data and let me know if there’s anything else you’d like […]

The expense accounts are closed in one compound closing journal entry to the Income Summary account. All expense accounts income statement with a debit balance are credited to bring them to zero. Their balances are transferred to the Income Summary account as an offsetting debit. Order to Cash Where DIO and DSO stand for days […]

These materials significantly impact production efficiency, costs, and overall product quality. Always make sure you mention such interdependencies when discussing variances in exam questions. Raw goods impact production efficiency, pricing, and environmental responsibility. Using high-quality raw materials leads to better products and customer satisfaction. Raw materials are the fundamental substances used to create finished products. […]

In a time when HR teams are being asked to do more with less, time off management is an area that offers major potential cost savings. Articles, FAQs, and interactive maps to help you learn all about paid time off, including policy types, PTO payout, and leave laws. Some employers allow unlimited accrual, but they […]

In contrast, current payments have more value because they can be invested in the meantime. It’s also important to note that the value of distant payments is less to purchasing companies due to economic factors. The sooner a payment is owed to you, the more money you’ll get for that payment. For example, payments scheduled […]

The loan’s purpose is also critical in determining the tax-deductibility of interest expense. For example, if a loan is used for bona fide investment purposes, most jurisdictions would allow the interest expense for this loan to be deducted from taxes. Assume ABC Company has a $10 million loan at a fixed interest rate of 8%. […]

An important point to be noted here is that if any advance amount was received during the application, such money should be adjusted towards the share allotment account. However, firstly the advance money should be adjusted against the nominal value of shares, and if any balance remains, it shall be adjusted against the securities premium […]

Accurately measuring and valuing gain contingencies is a complex task that requires a blend of financial acumen and strategic foresight. The process begins with identifying the potential sources of gain and understanding the specific circumstances surrounding each contingency. This initial step is crucial as it sets the stage for the subsequent valuation efforts. For instance, […]

Understanding the history of accounting is key to understanding many facets of society’s shifts over time. Accounting’s earliest days may have come 12,000 years ago, when people likely traded resources while primarily surviving by hunting animals and gathering fruit. By comparison, accounting today involves various electronic processes and is responsible for billions of dollars in sales. The […]

Net sales, on the other hand, subtracts deductions—hence the distinction between net and gross. To calculate your net sales, you first need to calculate your gross sales. Net sales represent the total amount of revenue Retail Accounting generated from the sale of goods or services after deductions for returns, discounts, and allowances. Net sales are […]