What is an Accrued Receivable?

Accrued receivables are recorded just before recording accounts receivables for credit sales. The term accrued receivables is often used interchangeably with accounts receivables. The major difference between the both lies in the timing for issuing an invoice. When a reporting entity cannot issue an invoice to its customers but is certain of revenue, it can […]

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What are Average Operating Assets?

Average operating assets refer to the average of beginning and ending operating assets of a business in an accounting period. It can be calculated by adding the beginning and ending figures of operating assets and then dividing it by two. Operating assets include cash, inventory, equipment, receivables, and any other assets utilized in the operating

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What is an Allowance in Accounting?

Allowances are future expenses that a business anticipates against certain accounts. They can also refer to benefits received by employees as part of their remuneration packages. Businesses must ensure a uniform and transparent method to record these allowances and reconcile them as and when actual transactions occur in the future. Let’s discuss what is an

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What is the Difference Between an Unadjusted Trial Balance and an Adjusted Trial Balance?

An unadjusted trial balance is a summary of the general ledger accounts before making any adjustments while the finished product is the adjusted trial balance. Both these types of trial balances come from the same bookkeeping records. However, an adjusted trial balance requires corrections and adjustments for missing entries. Let us discuss what are unadjusted

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What Are Average Total Assets and How to Calculate Them? [Including Uses, Benefits, and Limitations]

Average total assets show the operating efficiency of a business and can be used to compare net income in terms of assets. It is a commonly used financial metric with a few simple steps to calculate the figure. However, it does come with some limitations as it uses historical data. Let’s dive into the details

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What Are Audit Tick Marks?

Audit tick marks are supportive tools for auditors that help them define their auditing opinions about the financial statements they review. These tick marks can be symbols or abbreviated notations. They can be defined differently by auditing teams in different regions. Let’s go through the details and find out what are audit tick marks, how

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