Posted inBasics
What is the difference between financial accounting and management accounting?
Financial accounting has its focus on the financial statements which are distributed to stockholders, lenders, financial analysts, and…
Posted inBasics
What are accrued expenses and when are they recorded?
Accrued expenses are expenses that have occurred but are not yet recorded through the normal processing of…
Posted inBasics
What is petty cash?
Petty cash meaning Petty cash is a small amount of cash on hand that is used…
Posted inBasics
What is owner’s equity?
Owner's equity is one of the three main components of a sole proprietorship's balance sheet and accounting equation.…
Posted inBasics
How do I calculate the amount of sales tax that is included in total receipts?
To calculate the sales tax that is included in a company's receipts from items subject to sales…
Posted inBasics
What is the cost of goods sold?
The cost of goods sold is the cost of the merchandise that a retailer, distributor,…
Posted inBasics
What is the difference between the cash basis and the accrual basis of accounting?
Under the cash basis of accounting... 1. Revenues are reported on the income statement in the period in which…
Posted inBasics
What is the distinction between debtor and creditor?
A debtor is a person or enterprise that owes money to another party. (The party to whom…
Posted inBasics
What are accruals?
Accruals are adjustments for 1) revenues that have been earned but are not yet recorded in the accounts,…
Posted inBasics
What is the difference between accounts payable and accounts receivable?
Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier…