Perpetual Inventory System – Meaning, Advantages And More
Perpetual Inventory System is a method in accounting for calculating inventory immediately after the sale and purchase with the use of computerized point-of-sale systems… Read Article
Financial Accounting
Bank Reconciliation Statement
A bank reconciliation statement is a synopsis of banking activities that matches a business entity’s ledger transactional records. A bank reconciliation statement is an… Read Article
Corporation
A corporation is a group of people or organizations who are authorized to form a single legal entity separate from its owner. It does… Read Article
Classified Balance Sheet – Meaning, Importance, Format And More
The classified balance sheet shows various information under different subcategories. In simpler terms, the major items such as assets, shareholders’ equity & liabilities, and… Read Article
Allowance for Doubtful Accounts – Meaning, Accounting, Methods And More
Most businesses sell their goods and services on credit. However, not all customers end up paying the money they owe to a company. Though… Read Article
Gross Income
Gross income is the total amount of money that an individual earns before any deductions of taxes. For example, an individual receives $3000 as… Read Article
Current Liability – Meaning, Types, Accounting And More
Current Liability is a financial obligation that a company needs to pay within a year of incurring it. Also known as short-term liability, a… Read Article
FOB Meaning
FOB, meaning in terms of shipping, is Free on Board or Freight on Board. There are two types of FOB in shipping. The first… Read Article
Revenue Recognition Principle
The revenue recognition principle states that a firm should record revenue in its books of accounts when it is earned, realized, or realizable, and… Read Article
MACRS – Meaning, Importance, Calculation And More
MACRS, or the modified accelerated cost recovery system, is the system of calculating tax deductions on depreciation in the United States. Under this, the… Read Article
Accrued Expense – Meaning, Accounting Treatment And More
Accrued expense or accrued liabilities is the term describing the payments or expenses that the company incurs or recognizes but would be due for… Read Article