For expenses that are owed but have not been paid, an accrued liability account will be used. Entry #3 — PGS takes out a bank loan to renovate the new store location for $100,000 and agrees to pay $1,000 a month. He spends all of the money on i... Read more
Assume all the following entries have been posted to the appropriate ledger “pages”. The highlighted entries are the ones posted to the Cash account ledger. Notice that the ledger provides a running total but the journal does not, since... Read more
An equal split will artificially deflate or inflate profits on one product or the other. Likewise, randomly allocating expenses will produce artificial results. To handle this on the business side, there are usually pricing matrices that work backwa... Read more
If the actual is less than the applied overhead, they may ask the accountants to reduce the overhead applied to jobs. A job cost system (job costing) accumulates costs incurred according to the individual jobs. Companies generally use job cost syste... Read more
Cash flow from investing activities involves long-term uses of cash. The purchase or sale of a fixed asset like property, plant, or equipment would be an investing activity. Also, proceeds from the sale of a division or cash out as a result of a mer... Read more
But if you want your life to become easier (not to mention succeed in your career), you need to acquire good time management skills. Start by creating to-do lists; this will help you focus on specific important tasks for the day. You could also cons... Read more
Therefore, a comprehensive invoice management solution could be highly advantageous for sending invoices swiftly and receiving invoice payments on time. In addition, it can decrease duplicate documents and administrative burdens. Invoice management... Read more
Nonetheless, you may find a need for some of the following entries from time to time, to be created as manual journal entries in the accounting system. Cash would be debited $2500, sales revenue would be credited $2500. Cost of goods sold would be d... Read more
Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs. We follow strict ethical journalism practices, which includes presenting unbiased in... Read more
When using absorption pricing, fixed overhead costs are assigned to a product regardless of whether or not that product was sold during the period being analyzed. In a nutshell, despite being connected with a number of restrictions, it is an effecti... Read more
