Financial Accounting

This category covers various aspects of financial accounting such as basic accounting, principle of accounting, accounting treatment as well as financial statements or financial reporting.

What is a Stale Check?

A check is a document that serves as an order to a bank to pay another party. Usually, an account holder will have a check book that they can use as a form to request this payment. Using this document, the account holder can make a request from their bank to use a specified amount

What is a Stale Check? Read More »

Accounting for Destroyed Inventory

For companies that sell products, inventory makes up a large portion of their assets. This inventory may include any stock that companies use to manufacture products. It constitutes both raw materials and finished goods. For some companies, any items that are still a part of the production process are also a part of the inventory,

Accounting for Destroyed Inventory Read More »

Accounting for Cash Sales

Sales revenue of a business comes from either cash sales or credit sales. Cash sales are sales made for cash. That’s mean the seller receives cash payment immediately upon providing goods or services to its customers.   In this article, we cover the accounting for cash sales. This includes both sales with sales tax and sales

Accounting for Cash Sales Read More »

Accounting for Credit Sales

Sales on credit are very common in today’s business environment. This is because each business needs to manage its working capital properly. When a business makes sales on credit, such sales correspondent entry will be on the accounts receivable. In contrast, when the company makes a purchase on credit, the correspondent entry of such purchase

Accounting for Credit Sales Read More »

Accounting for Consignment Inventory

What is Consignment Inventory? Consignment inventory refers to any stock that a company has the legal rights to but does not hold. Usually, another company, known as the consignee, keeps the stock. Although another company holds the goods, the risks and rewards associated with the inventory remain with the owner. The concept of consignment inventory

Accounting for Consignment Inventory Read More »

How to Account for Land Improvements?

For most companies, non-current assets play a significant role in long-term survival and revenue generation. Companies utilize these assets to help in manufacturing products, attracting customers, creating value, etc. These are all necessary to increase profitability over several periods. Non-current assets come as a result of capital expenditure. Companies incur these expenses to obtain benefits

How to Account for Land Improvements? Read More »

What is Imprest System?

Cash is one of the most critical assets for companies and businesses. A proper cash management system can help companies survive in the long run. These may include various procedures that can be a part of a company’s cash management system. Usually, companies divide cash into two categories. These include cash in the bank and

What is Imprest System? Read More »

Scroll to Top