and will depend on the adjustment needed in the Allowance account. In order to determine the balance needed in the Allowance account, companies will review an aging of accounts receivable. The aging sorts the unpaid...
and will depend on the adjustment needed in the Allowance account. In order to determine the balance needed in the Allowance account, companies will review an aging of accounts receivable. The aging sorts the unpaid...
Our Explanation of Accounts Receivable and Bad Debts Expense helps you understand the accounting for the losses associated with selling goods and providing services on credit. You will understand the impact on the...
brands and/or trademarks from other companies), the amounts spent are reported as expenses when they occur. The costs are not recorded nor reported as an asset on its balance sheet. As a result, a...
fraction of its physical life. 5. One company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right. True Right!...
Our Explanation of the Balance Sheet provides you with a basic understanding of a corporation's balance sheet (or statement of financial position). You will gain insights regarding the assets, liabilities, and...
Our Explanation of Break-even Point illustrates how to determine the number of units or sales dollars that will result in zero net income. The techniques rely on a product's contribution margin or contribution margin...
bank account. You can learn more by visiting our topic Bank Reconciliation. Accounts Receivable Accounts receivable arise when a company sells goods on credit. For instance, some companies provide its customers with...
Our Explanation of Accounting Basics uses a simple story to introduce important accounting concepts and terminology. It illustrates how transactions will be included in a company's financial statements.
Our Explanation of Accounting Basics uses a simple story to introduce important accounting concepts and terminology. It illustrates how transactions will be included in a company's financial statements.
Our Explanation of Financial Ratios includes calculations and descriptions of 15 financial ratios. As you calculate the financial ratios you will also gain a deeper understanding of a company's operations and financial...
Our Explanation of Payroll Accounting discusses the taxes and benefits which are withheld from employees' pay as well as the taxes and benefits that are expenses for the employers. Also provided are examples of the...
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