Accumulated depreciation is the summation of the depreciation expense taken on the assets over time. It is a contra-asset account and is displayed together with the asset on the balance sheet. The acquisition cost refers to the overall cost of purch... Read more
AI-driven data extraction software like Nanonets can help automate the process. The use of AI-OCR in the final step of the Procure-to-Pay workflow comes with compelling benefits such as time and cost savings, a streamlined approval process, and ulti... Read more
Our goal is to deliver the most understandable and comprehensive explanations of financial topics using simple writing complemented by helpful graphics and animation videos. We follow strict ethical journalism practices, which includes presenting un... Read more
This may occur in stages, if deliverables are sent out over a period of time. Anytime there is a customer deposit account, remember that it will be treated as a current liability. It happens when the goods and services provided are within a year; it... Read more
The Current Assets categorization on the balance sheet represents assets that can be consumed, sold, or used within one calendar year. These are investments that a company plans to sell quickly or can be sold to provide cash. The balance in the gene... Read more
If you have any other current assets that can easily be converted into cash within a year (like promissory notes or tax refunds, for example) that do not fit into any of the above categories, list them here. Here are the seven main types of current... Read more
A ratio that increases quarter on quarter, or year on year, shows that suppliers are being paid more quickly, which could indicate a cash surplus. As such, a rising AP turnover ratio is likely to be interpreted as the business managing its cash flow... Read more
Use this easy-to-fill template to document various expenses, the dates they were accrued, total costs, and employee information. This printable daily expense report template is a versatile solution for various industries such as nonprofit, fundraisi... Read more
A separate cost of production report is prepared for each processing department. The cost of ending inventory in a Process Costing system is equal to the sum of all costs for units transferred out plus labor and factory overhead costs, less any mate... Read more
Taking the average product cost over a time period has a smoothing effect that prevents COGS from being highly impacted by the extreme costs of one or more acquisitions or purchases. LIFO is where the latest goods added to the inventory are sold fir... Read more
