Catégorie : Bookkeeping

For example, if a company borrows $10,000 from its local bank, the company will debit its asset account Cash for $10,000 since the company’s cash balance is increasing. The same entry will credit its liability account Notes Payable for $10,000 since that account balance is also increasing. The rules of debit and credit (also referred…
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While the time period assumption is a cornerstone of financial reporting, it must be applied judiciously, considering its interplay with other accounting principles. Accountants must balance the need for periodic reporting with the goal of presenting a fair and complete picture of an organization’s financial health. The time period assumption allows the company to recognize…
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Detailed reports on income, expenses, profit margins, and other key metrics offer valuable insights that can drive strategic planning and decision-making. Ezus is a cloud-based software crafted for DMCs, agencies, and travel planners. It enables the https://www.bookstime.com/ effortless creation and sale of customized travel proposals, workflow automation, and supplier information centralization. The platform includes tools…
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After reviewing the product cost and consulting with the marketing department, the sales prices were set. The sales price, cost of each product, and resulting gross profit are shown in Figure 6.6. Two companies, ABC company, and XYZ company are competing to get a massive order that will make them much recognized in the market.…
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These drawings must be accurate and complete to ensure that financial accounts are properly maintained. When the owner withdraws cash or other assets, it reduces the assets of the business. This reduction in assets is reflected in the balance sheet under the owner’s equity section. Bookkeeping Chartered accountant Michael Brown is the founder and CEO…
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The adjusted trial balance for Bold City Consulting is presented in Figure 1. The adjustments need to be made in the trial balance for the above details. The adjusting entries for the first 11 months of the year 2015 have already been made. After posting the above entries, the values of some of the items…
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Businesses selling physical products usually calculate one unit as one item sold. The unit economics is calculated as the contribution margin, which is the difference between the selling price per unit and the variable costs per unit. If spending on some of these areas is critical, the burn rate can show how much revenue will…
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This facilitates a cohesive partnership between the outsourcing team in India and the client, driving efficiency and achieving desired outcomes. Conduct extensive due diligence to identify reputable firms with a strong track record, relevant expertise, and cultural compatibility. Evaluate factors such as past performance, client testimonials, and industry reputation to ensure a reliable and trustworthy…
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In this blog post, we will explain what sales mix is, why it is important, and provide an example to illustrate the concept. For example, let’s consider a company that sells two products, A and B. Product A has a selling price of $10 and a variable cost of $5, while Product B has a…
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Recognition depends upon the nature of service being provided against entrance and membership fees, however entrance fees are generally capitalized and membership fees should be recognized on systematic and rational basis having regard to timing and nature of service provided. Revenue from such sales should be recognized when the goods are identified and ready for…
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