Posted inBasics
What Is The Accounting Cycle?
The accounting cycle is a series of activities that compiles an organization’s transactions at the…
Posted inBasics
What is meant by reconciling an account?
Reconciling an account often means proving or documenting that an account balance is correct. For example, we…
Posted inBasics
What is included in cash and cash equivalents?
The term cash and cash equivalents includes: currency, coins, checks received but not yet deposited, checking accounts, petty cash,…
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What is principles of accounting?
Three meanings come to mind when you ask about principles of accounting... 1. Principles of Accounting was…
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What is the difference between an implicit cost and an explicit cost?
An implicit cost is a cost that has occurred but it is not initially shown or reported…
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What are prepaid expenses?
Prepaid expenses are future expenses that have been paid in advance. You can think of…
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What are nonmanufacturing overhead costs?
Nonmanufacturing overhead costs are the business expenses that are outside of a company's manufacturing operations.…
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What is the difference between product costs and period costs?
A manufacturer's product costs are the direct materials, direct labor, and manufacturing overhead used in making its products. (Manufacturing overhead…
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What is the meaning of equity?
Equity is used in accounting in several ways. Often the word equity is used when referring to…
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What is the cost of sales?
Cost of sales is the caption commonly used on a manufacturer's or retailer's income statement instead…