A corporation’s net income after income taxes minus the dividends pertinent to the preferred shares of stock (if any).
A corporation’s net income after income taxes minus the dividends pertinent to the preferred shares of stock (if any).
Under this method of recognizing losses on credit sales, a contra asset account Allowance for Doubtful Accounts is reported on the balance sheet. Prior to specifically identifying an account receivable as uncollectible,...
What does NOI stand for? NOI is the acronym for net operating income. Net operating income is also referred to as income from operations. NOI excludes discontinued operations, extraordinary items, and nonoperating (or...
This is the sum of the beginning inventory of merchandise plus the net cost of the merchandise purchased including freight-in.
What are the disclosures for a manufacturer's inventory? A manufacturer should disclose the following categories of inventory: raw materials, work-in-process, finished goods, manufacturing supplies, and packaging...
What is accounting for price level changes? In 1979 the Financial Accounting Standards Board (FASB) issued its Statement of Financial Accounting Standards No. 33 entitled Financial Reporting and Changing Prices. (You...
What is the accounting journal entry for depreciation? Definition of Journal Entry for Depreciation The journal entry for depreciation is: Debit to the income statement account Depreciation Expense Credit to the balance...
Reducing the Need for Accruing Expenses One day I was explaining to the owner of a small business that I would have to accrue for the shipping expenses associated with his company’s sales. Since the shipping company...
What is the 13-point average for inventory? The 13-point average for inventory for the calendar year 2023 would be the sum of the following: (the inventory amount at December 31, 2022 plus the 12 end-of-the-month amounts...
What is the Allowance for Doubtful Accounts? Definition of Allowance for Doubtful Accounts The Allowance for Doubtful Accounts is a balance sheet contra asset account that reduces the reported amount of accounts...
How do you account for bond issue costs? Definition of Bond Issue Costs The costs associated with issuing bonds are debited to a contra liability account such as Bond Issue Costs. Over the life of the bonds, the issue...
Featured Review
"I became a PRO user of AccountingCoach to enhance my knowledge of accounting procedures, as I am self-taught, and knew from the first time I logged on that this site would be beneficial for me. I like the AccountingCoach website because of the detailed explanations of procedures and the self-testing to show where my weaknesses and strengths are, and because it is an extremely useful reference program. The benefit of using AccountingCoach for me is the easy access to specific subject matters and the assistance it provides me to learn, grow, and take on added responsibilities with confidence in my role as Accounting Manager. I would highly recommend this site for anyone who is responsible for accounting, bookkeeping, and financial reporting. It has helped me personally to gain confidence in providing accurate financial information to the owner of our company." - Darlene H.
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,645 reviews
For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.
We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping: