Accounting Procedures: The Payroll Procedure
Jennifer edwards The payroll is associated with employ and the staff and this involve a complete flow of assigning error free payroll to the employees. The payroll procedure is a complex procedure…
Accounting Procedures: The fixed Asset recognition procedure
The fixed asset recognition procedure is used in accounting to recognize and categorize fixed assets at an early stage. It is important to recognize fixed assets in early period of…
Accounting Procedures: Credit Granting Procedure
It is a procedure of granting credit to the customers on their request. This is a complete procedure that ensures one thing that a firm’s credit is not granted to…
The Cost Method of Investment Accounting
The cost method of investment accounting is a method of calculating cost of investment made by an investor. There are two general rules of cost method of investment accounting one…
Full Disclosure Principle of Accounting
The full disclosure principle states that while designing and maintaining financial statements of an entity you should add all the information that is necessary to develop an understanding regarding the…
The Economic Entity Principle of Accounting
The economic entity principle of accounting is a principle that gives us guideline about storing the financial information of a given entity. This principle states that the financial information of…
Impairment Accounting
Impairment accounting is the branch of accounting that deals with the cost of the fixed assets and also referred as impairment accounting of fixed assets. The impairment of the fixed…
Units of Production Depreciation
Units of Production Depreciation The units of production method of depreciation calculate depreciation by using the concept that the depreciation expense of fixed asset is directly proportional to the usage…
Sum of Year‘s Digit Depreciation Method
This is the method of calculating the acceleration of depreciation that means that how fast an asset is being depreciated. With the help of this method most of the depreciation…
Production Budget
Production budget can be defined as the estimation or calculation of total number of units of products that must be manufactured in that budgeting period in order to achieve estimated…
Sales Budget
A sales budget is representation of the expectation of a company regarding its sales both in terms of units and cash for that particular budgeting period. If a company covers…
Budgeted Income Statement
A budgeted income statement is a projection or representation of a normal income statement with respect to the representation of income statement with future budgets. The budgeted income statement is…
How to define a dividend policy
Dividend policy is a form of document that is designed by the management and decision makers of the company to decide the amount of dividend that must be paid to…
Inventory with High Turnover
A high inventory turnover means that the size of the inventory and the number of products in the inventory of a company is constantly increasing. A high turnover inventory can…
Contingent Liability
A contingent liability can be defined as the loss that is not calculated at present but may occur at some point in future. The contingent liability comes in to the…
Accounting for bad debts and early payment discounts
Whenever a company sells its products and services the amount is either paid in cash on hand or the customers are allowed to pay for the products later. Whenever the…
Cost of Quality
The cost of quality may be defined as the cost associated with manufacturing high quality products according to the money spent by the customer and the expectation of the customer.…
Sales Tax Accounting
Sales tax is a kind of tax that is charged to the customer whenever the customer makes purchase of a certain product. The sales tax is charged by the company…