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ABC inventory classification. A method for dividing inventory into classifications, either by transaction volume or cost. Typically, category A includes that 20% of inventory involving 60%...
On the previous post, you have probably learnt how chart of accounts is constructed with its digitization numbering system. This post describes terms and definitions used...
This post covers the types of account numbering formats that can be used to construct a chart of accounts, and also lists sample charts of accounts that...
Accounting records are kept on the accrual basis, except in the case of very small businesses. To accrue means to collect or accumulate. This means that...
The Enron effect The sudden collapse in late 2001 of Houston, Texas-based energy company Enron had a profound effect on the accounting industry. Enron engaged in...
There is a lengthy list of reasons why a best practice implementation may not succeed, as noted in the following points. The primary reason for listing...
From now on, I am going to add “Accounting Best Practice” as a separated category which will give overview of situations in which best practices implementations...
In accounting and financial, often we only communicate with vendors — those people whose products or services we need to run our own business or to...
Are you a business owner, or a new financial controller, or a new accounting manager or a new financial manager in stage to hire a bookkeeper?...
Boiled down to its essence, a firm participates in two kinds of financial transactions: those that increase the cash balance (cash inflows, or sources of funds)...
PURCHASE ORDER is a simply look commercial documents issued by a-company or an organization or a person “as a buyer” to “purchase” goods or services from...
Purchase Order – practical software to help with writing purchase orders. If your business uses purchase orders, but you have not been able to find a...
Outright adoption of IFRS or convergence with these standards is now a global phenomenon that is rapidly gathering pace. Australia, Russia, the entire European Union, several...
INVESTMENT IN ASSOCIATES Definition IFRS: An associate is an entity over which the investor has significant influence – that is, the power to participate in, but...
CONSOLIDATED FINANCIAL STATEMENT Preparation IFRS: Parent entities prepare consolidated financial statements that include all subsidiaries. An exemption applies to a parent: that is itself wholly owned...
This is specifically written as a supplement of my previous post about “Developing Credit Policy”. As I aware that company may need to arrange a special...
This is to follow my previous post about credit policy. And on this post we are developing a credit policy. Credit is temporary capital and the...
Credit is an indispensable catalyst in financing the movement of commerce. Its roots go fairly deep in time and are definitely as old as the concept...