Still, liabilities aren’t necessarily bad as they can help finance growth. For example, a line of credit is taken out to purchase new tools for a small business. These tools will help the company operate and grow, which is a good thing. The tri... Read more
Depreciation refers to the decrease in value of assets and the allocation of the cost of assets to periods in which the assets are used–for tangible assets, such as machinery. It requires companies to record when revenue is realized or realizable and... Read more
Get hands-on, practical experience in medical billing and coding that will help you on the job. Online payments through Workday are recommended as the most convenient way to may payment on a student's account.In some states, vocational rehab or workf... Read more
Similarly, you don’t always ship goods to a customer on the same day that you invoice them. These timing differences will cause discrepancies in your accounting unless you put methods in place to factor for them. If your system does not track e... Read more
Utilities used in the manufacturing process will be part of the cost of the products manufactured. The accrual basis of accounting recognizes utilities expenses as incurred compared to the cash basis accounting method when the bills are paid. However... Read more
In these circumstances, proactive maintenance and other methods are still necessary to ensure assets reach their expected life and do not have to be replaced prematurely. The useful life of an asset is an estimate, not an exact number.... Read more
The direct material usage variance is the difference between the actual and expected unit quantity needed to manufacture a product. The variance is used in a standard costing system, usually in conjunction with the purchase price variance.... Read more
A perpetual system tracks every transaction as it happens, including purchases and sales. The system also tracks all information pertinent to the product, such as its physical dimensions and its storage location. Here, we’ll briefly discuss the... Read more
The higher the total asset turnover ratio, the better and the more efficiently you use your assetbase to generate your sales. A turnover ratio represents the amount of assets or liabilities that a company replaces in relation to its sales. The concep... Read more
An error of commission is when the entries are made at the correct amount, and the appropriate side , but one or more entries are made to the wrong account of the correct type. For example, if fuel costs are incorrectly debited to the postage account... Read more
