Bookkeeping

If you use this method of accounting, you’ll have to tally up your earnings and outgoings in the same accounting period. Businesses manage their finances using either cash basis of accounting or accrual basis of accounting. These two methodologies are different in their approach towards recording ...

To learn more about the balance sheet, see our Balance Sheet Outline. For the past 52 years, Harold Averkamp (CPA, MBA) hasworked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on Accoun...

For example, a mortgage loan is used to purchase property, and a student loan covers education expenses. For these types of debts, the borrower does not receive the money directly; the funds go to the person or organization providing the goods or services. With mortgage loans, for example, the selle...

For example, a mortgage loan is used to purchase property, and a student loan covers education expenses. For these types of debts, the borrower does not receive the money directly; the funds go to the person or organization providing the goods or services. With mortgage loans, for example, the selle...

This in turn means you can be far more efficient when it comes to collecting your payments. This ratio tells you how many times you’re collecting your what is the meaning of a favorable budget variance average accounts receivable balance. A higher ratio means that a company is collecting its recei...

No interest income is recorded at the date of the issue because no interest has yet been earned. In some cases, the term of the note is expressed in days, and the exact number of days should be used in the interest computation. In this example, interest is based on the fact that the note […]...