. ELCO purchases goods through a supplier’s catalog which shows only the “list price” for each item. Based on its annual purchase volume from the supplier, ELCO receives a trade discount of 30%. The supplier’s...
. ELCO purchases goods through a supplier’s catalog which shows only the “list price” for each item. Based on its annual purchase volume from the supplier, ELCO receives a trade discount of 30%. The supplier’s...
Our Explanation of Working Capital and Liquidity provides you with an in-depth look at the components of working capital and the challenges of converting current assets to cash before obligations come due. You will see...
Our Explanation of Debits and Credits describes the reasons why various accounts are debited and/or credited. For the examples we provide the logic, use T-accounts for a clearer understanding, and the appropriate general...
Our Explanation of Standard Costing uses an easy-to-relate to example for illustrating a manufacturer's standard costs and variances. Also provided is a chart which indicates each variance, what it tells you, and where...
and as such is relevant to the decision. 10. A variable expense means that the per unit amount will vary with sales. True Wrong. A variable expense varies in total as sales vary. It is constant on a per unit basis. For...
Our Explanation of Depreciation emphasizes what the depreciation amounts on the income statement and balance sheet represent. Learn why depreciation is an estimated expense that does not assist in determining the current...
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...
. This would violate which accounting principle/guideline? Cost Right! The cost principle requires that assets be recorded at their cost at the time they are acquired. The cost principle prohibits increasing the...
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.
are not included in a corporation's net income. Rather this item is part of other comprehensive income. The combination of other comprehensive income + net income is known as comprehensive income. 30. If a U.S....
of the above items View Coaching A positive amount of net income will cause retained earnings to increase. A positive amount of other comprehensive income will cause accumulated other comprehensive income to increase....
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 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...
Since our Explanation of Cash Flow Statement illustrates how the amounts are determined, you will get a better understanding of this very important financial statement. No longer will you look at only the income...
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...
the current quantities of every inventory item on hand with the quantity sold in the recent past. This report will expose the inventory items not turning over. Cash Flow Statement Since liquidity depends on a company...
Our Explanation of Adjusting Entries gives you a process and an understanding of how to make the adjusting entries in order to have an accurate balance sheet and income statement. Eight examples including T-accounts for...
in the investing section. Supplemental Wrong. The gain is shown as a deduction in the operating activities section. The proceeds from the sale will appear in the investing section. 6. The proceeds from the sale of the...
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