Accounting for Manufacturing Businesses
Jennifer edwards There are a number of accounting issues that are involved in a manufacturing businesses that are absolutely absent from the accounting procedures of the other companies. The accounting procedures involved…
High-Low Method
High-Low Method is used in cost accounting to discern or differentiate the fixed and the variable costs portions from the total cost figure. The high low method is usually used…
Correct Capitalization Limit
Capitalization limit can be defined as the dollar amount that a business paid for an asset. The asset for which capital is paid by the business is recorded as the…
Accounting for Capital Lease
A capital lease is a kind of lease in which the lessee records the assets to be leased in the same way as it owns the assets that are going…
Conservatism Principle
Conservatism principle is an accounting principle that helps accountants in verifying the coming expenses, losses, profits and revenues. According to this principle accountants must use an approach where they must…
Calculating Full Time Equivalent
The full time equivalent is referred to the hours worked by a certain employee within a business on full time biases. There is a general calculation of full time equivalent…
Discount Allowed and Discount Received
A discount allowed is an accounting term where the seller grants a discount in payment to the seller. This kind of discount can be the early payment discount that is…
Other Comprehensive Income
Other comprehensive income is those expenses, revenues, profits and losses that are excluded from the net income of the business on the income statement of that accounting period. The concept…
Income Summary Account
According to the accounting terminology income summary account is a transitional account in which all the expenses and revenue accounts of the income statement are transferred at the end of…
What are Final Accounts?
Final Accounts is a term that is used in the basic bookkeeping procedures and is referred to the final trail balance of the accounts at the end of a certain…
Work in Process Accounting
In accounting the term work in process means the goods that are under the process of completion but are not completed yet. The work in process goods are somewhere in…
Stake Holder Value
Stake Holder value is an accounting concept that is based on the idea of creating maximum returns for all the stake holders involved in a business. The concept of stake…
Wealth Maximization
In accounting wealth maximization can be defined as a concept of maximizing the value of business. With the help of wealth maximization a business can increase the value of shares…
Foreign Exchange Accounting
A number of times such a situation arises in the business where the business has to receive a schedule payment from a client in foreign currency and in the same…
What is Depreciation?
Depreciation can be defined as a reduction in the recorded cost of a fixed asset. There are a number of fixed assets that are routinely depreciated every year such as…
Financial Analysis
Financial Analysis is a process of analyzing, comparing and comprehending the financial information of the business to take important financial decisions. There are a number of situations in which we…
Sales Mix
Sales Mix is a mixture of different products and the services of a company that make a complete sale of that company. In most of the cases the sales of…
Dollar Value LIFO Method
The dollar value of LIFO method is an inventory method that is a minor variation of the Last In and First Out method of inventory costing. With the help of…