Compared to variable costing, absorption costing income statements tend to show less volatility in operating income from period to period. This is because fixed costs are smoothed into COGS rather than impacting the period they are incurred. This differs from variable costing, which only allocates variable costs to units and treats fixed costs as period …
Public companies, on the other hand, are required to obtain external audits by public accountants, and must also ensure that their books are kept to a much higher standard. The balance sheets and other financial statements of these companies must be prepared in accordance with Generally Accepted Accounting Principles (GAAP) and must be filed regularly …
SG&A costs are reported on the income statement, the financial statement that your business prepares to figure out how profitable it is. There are also a few specific accounts that may warrant specific accounting treatment that excludes them from SG&A. For example, research and development costs are often not to be included accounting for consignment …
Selling, General, and Administrative SG&A Expenses: Meaning and Formula Leer más »
Such disbursements are a common problem in petty cash, where there is a high risk of fraud. Also, since most petty cash custodians are not trained as accountants, they may incorrectly record disbursements. For these reasons, a petty cash reconciliation should be conducted https://www.kelleysbookkeeping.com/journal-entries-for-credit-card-transactions/ at regular intervals. The review can be treated as an audit, …
What is the correct entry to replenish a petty cash fund? Leer más »
This takes the form of a summarization of all the receipts that the custodian has accumulated. The cashier creates a new check in the amount of the receipts, and swaps the check for the receipts. Let’s assume that a company has a petty cash fund of $100 and its general ledger account Petty Cash has …
Brooks is a certified and licensed CPA with over 20 years of tax and accounting experience. Brooks can handle specific accounting transactions such as sales tax, payroll services, bookkeeping, and year-end quarterly filings. He can also assist his clients on their tax preparation, overseas tax issues, and IRS negotiations. During his spare time, you can …
Boulder Bookkeeping, Accountants & Accounting Firm Leer más »
