The revenue recognition principle states that revenue should be recognized when it is earned, regardless of when payment is received. On the other hand, expenses should be recognized when they are incurred, regardless of when payment is made. Prepaid expenses are expenses that have been paid in advance but have not yet been incurred. For …
It applies especially in the valuation of inventory within the manufacturing industries. A furniture manufacturer absorbs the costs of materials, labour, factory rent and depreciation into the total cost of each table produced. Cost accounting Certified Bookkeeper encompasses a variety of techniques and approaches to recording, classifying, evaluating and controlling costs. The cost of an …
Expense Accounting: Meaning, Types, Methods, Procedures Read More »
Therefore, it can be seen as a collection of money that increases the cash and cash equivalent balance on its company’s balance sheet. However, accrual accounting transactions also use cash receipts as and when received from customers. In order to record the previous transactions into the cash receipts journal, they were recorded in the journal …
Capital expenditures are investments in long-term assets, e.g. the purchase of real estate, land, vehicles or production machinery. So, where profit will tell you how much money a company has made or lost, CFO tells you what direction cash is flowing (positive or negative) in relation to customer-centric activities. CFO, then, is how much you’re …
Get up and running with free payroll setup, and enjoy free expert support. If you are a sole proprietor or farmer, you should use Form 1040X (PDF) to file a claim. If your business is structured as an S-Corporation, you’ll need to use Form 1120S (PDF), and Form 1120X (PDF) if your business is a C corporation. If a written-off account …
Bad Debt: Definition, Write-Offs, and Methods for Estimating Read More »
