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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…
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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…
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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…
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What is petty cash?
Petty cash meaning Petty cash is a small amount of cash on hand that is used…