RDV

With cash accounting, this occurs only when money is received for goods or services. Accrual accounting instead allows for a lag between payment and product (e.g., with purchases made on credit). Adjusting journal entries are used to reconcile transactions that have https://www.fio.by/startapy/sotrydnikov-ishyt-touch-instinst-foksford-dodo-picca-i-edwin not yet closed, but that straddle accounting periods. These can be either payments […]

FIFO is an ideal valuation method for businesses that must impress investors – until the higher tax liability is considered. Because FIFO results in a lower recorded cost per unit, it also records a higher level of pretax earnings. FIFO has advantages and disadvantages compared to other inventory methods. FIFO often results in higher net […]

In most cases, companies receive payments through the bank for this process. However, companies may also issue shares in other cases, for example, in exchange for goods or services. When it issues no-par stock with a stated value, a company carries the shares in the capital stock account at the stated value. Any amounts received […]

Instead, the cost is spread out over the useful life of the asset through depreciation expenses. This allows the asset cost to be properly matched with revenues generated from using those assets over time. Matching principle is especially important in the concept of accrual accounting. How does the matching principle apply to depreciation? The matching […]