Category: Bookkeeping

It is essential for investors and other users of financial statements who need to be able to make informed decisions about a company. Imagine that a manufacturing company’s warehouse floods and $20,000 in merchandise is destroyed. If the company’s net income is $50 million a year, then the $20,000 loss is immaterial and …

Managing profit and loss in business accounting involves calculating revenue and finding ways to cut costs. Profits are earnings or cash in, and loss refers to anything the company has to pay for or money out—record profits and losses on a profit-and-loss statement or income statement. Business accounting refers to bookkeeping and managerial …

Content Free Resources Create an Annual Budget Empower Your Entire Organization Tag it, track it Compliance and Tax Liabilities The major problem with this is that checkbooks aren’t a double-entry system, thus reporting was a nightmare. Choosing the right church accounting software is important, but it’s only one part of the equation. Nonprofit …

Content Illustrative Auditors Reports What Is a Marketing Audit? Adverse Opinion-Adverse Audit Report The Difference Between a Qualified & Unqualified Audit Report AccountingTools Food Safety Internal Audit Report Template The auditors check to see whether the company uses GAAP or other applicable reporting frameworks in preparing the reports. Key audit matters [KAM] are those …

The IFRS Foundation is a not-for-profit, public interest organisation established to develop high-quality, understandable, enforceable and globally accepted accounting and sustainability disclosure standards. Agricultural produce is measured at fair value less estimated costs to sell at the point of harvest. [IAS 41.13] Because harvested produce is a marketable commodity, there is no ‘measurement …

Content Example of Asset Turnover Ratio What is Non-current Asset Turnover Ratio? Asset Turnover Ratio Formula What Financial Management Problem Could a Quick Ratio Identify? High vs. Low Asset Turnover Ratio How to Calculate the Total Asset Turnover Ratio A higher fixed asset turnover ratio indicates that a company has more effectively utilized its …

Content 2 Calculate and compare depreciation expense using straight-line, reducing-balance and units-of-activity methods. Limitations of Activity method: Everything You Need To Master Financial Modeling Straight Line Depreciation Formula What Is the Unit of Production Method & Formula for Depreciation? Units of production depreciation Units-of-activity method: One way to calculate depreciation is to spread …