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Professional literature of the accounting for marketable investments in debt securities isn’t easy to find. The only principle guidance that could be found, so far, is...
Sales incentives, future product returns and product warranties are classified as current liabilities. Unlike accounts payable where both payee and amount are known, three of them...
Before discussing how cost accountants setup target costing; what is the so-called target costing? You may ask. Let me tell you in short words: target costing...
Cash flows statement is an important report that both management and external readers want to have a look to determine the true state of a business...
A company’s annual financial plan is called a budget. In short words; a budget is a set of pro-forma statements about the company’s finances and operations....
Companies acquire their fixed asset in some different ways. Rather than simply purchase their fixed asset, some companies may choose to lease theirs. You record purchased...
While capital and repair expenditures have been long recognized in both the accounting and tax area, deciding whether to capitalize or expense fixed asset-related expenditures still...
The increase in the amount of fair value measurements, in financial reporting, creates a challenge for auditor. Auditing the fair value measurements is complex since fair...
Since couple of decades ago, balance sheet started to showing a strange snippet on its Equity section called Accumulated Other Comprehensive Income. The snippet has been...
One among other accounting issues, which is inevitable, in the inventory area is having future value of inventory that is in doubt (e.g. inventory items that...
While management of a company may consider whether using periodic or perpetual inventory system—in the aim of getting inventory system that fits into their operation, accountants...
Considering whether using perpetual or periodic inventory systems, is a first yet fundamental to take by a company before attempting to set up its inventory accounting....
Knowing how good you manage your accounts receivable is critical in managing the whole company’s financial. It could be meant: how good you pay your bills...
Identifying problems in a financial statements and figuring out how to minimize it in the first place, is a vital role the accounting people should strive...
Financial statements is main product of the accounting process. Understanding the logics behind a financial statements helps the management, share holders, investors, and other interested parties...
After opening e-file for business last week, today IRS has successfully opened e-file system—which is free for individual. The IRS, since 2003, has actually offered ‘low-to-moderate...
Performance assessment is crucial to management of any companies who wants to make sure that its operation is under control. To be able to go into...
In the past, manufacturing operations were mainly labor paced, and direct costs comprised the majority of product costs. Since the early 20th century, automation has been...