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Business Accounting and Bookkeeping
What accounting method are you using when you record income as the sale occurs?
What methods of accounting is revenue recorded ONLY when cash is received?
Asked in Business Accounting and Bookkeeping
What machine inspired the double entry accounting method?
Asked in Business & Finance
How do you record bad debit?
The accrual accounting method is - Debit the Bad Debt expense account Credit Accounts Receivable With cash basis accounting no record is made of the bad debt since the sale is not recorded until payment is received. Any materials and labor costs are recorded when paid. There is no deduction for loss of income since the income was not recorded.
What are the accounting journal entries to record income tax payments?
Why accounting principles are important in accounting cycles?
The Accounting Principles are the assenition rules of accounting and the application of these rules, method & procedures to actual practice of accounting. These Accounting principles have been.The basic principle of accounting is to identify, record, and communicate financial transactions. The simple form of the basic accounting equation is assets equals liabilities plus equity.
How do you record corporate income tax in accounting records?
Asked in MySpace
What transaction is found first on accounting record?
What are the functions of an accounting officer?
Write short note on cash based accounting?
Cash Method Accounting This kind of accounting is used when you want to report income and earnings during the period of fiscal accounting. For legal and government entity, September 30 is time of filing and the rest of the companies; it is the end of the year. Cash based accounting means that when you receive the money the sales are recorded right away. The expenses is also recorded when they are paid. Cash based method is good if your income is less than one million and you instantly collect money for your product and service. Ironically the government used this method even if they earn more than trillion dollars. If you choose cash based method accounting, there are a lot of benefits that go with it. Assess first your business because if cash based method can fit your process then you can save money from book keeping. If you don't maintain an inventory or you don't have customer accounts, then cash based method is a good choice because it much cheaper. With this method you can see right away if your business is becoming profitable. Cash based accounting is a very simple method but it can only record cash transactions and doesn't take note about everything else. It can never work for businesses who doesn't credit or offer credit. If your business is not keeping inventory then this is a good choice. With this kind of accounting, there are no account receivable and account payable.
Asked in Business Accounting and Bookkeeping, Acronyms & Abbreviations, Accounts Payable, Accounts Receivable
What is the abbreviation for the word Debit in accounting?
Asked in Financial Statements
What difference between proportionate method of consolidation and equity method of consolidation?
If there is a joint venture between two companies. Each of the companies, under the equity method, only records half of the income from the joint venture on the income statement-nothing on balance sheet. With the proportionate consolidation method, the parent companies record half of the liabilities and assets from the joint venture.
Asked in Personal Finance
What is cash basis accounting?
Cash basis accounting is the method of tracking finances at the time that cash is exchanged. So, when a customer pays you cash, you would record the transaction; when you pay for your expenses with cash, you would record the transaction. Cash basis differs from ACCRUAL BASIS accounting, which tracks the funds based on when the transaction created a debt. So, in accrual accounting, you would record a transaction when you issue an invoice (requiring payment) because ACCRUAL accounting recognises this invoice as an asset, even though it has not yet been realised. Similarly, when you receive a bill from a client or utility, that bill (in accrual accounting) is recorded as a debt, even though it has not yet been paid. So CASH ACCOUNTING and ACCRUAL ACCOUNTING differ in the TIMING of the record of when the transaction is paid - at time of exchange of cash/funds or at time of notice of requirement to pay. - Xavier
What is the difference between accrual and cash accounting?
Cash base accounting and accrual base accounting are two methods or systems of accounting. Under Cash base accounting every transection is recorded when cash is received or paid actually. Under Accrual base accounting transection is recorded when transection actually happens and not when cash is received or paid. Example When sales record at it occurs is called accrual base accounting, but when transection is recorded when cash is received from client is called cash base accounting.