Categoría: Bookkeeping

Individually assessing a company’s cost structure allows management to improve the way it runs its business and therefore improve the value of the firm. Since they are not GAAP-compliant, cost accounting cannot be used for a company’s audited financial statements released to the public. It is mostly appropriate for short term assets as the business…

For example, the debtors’ business is bankrupt due to Covid-19 and they could not effort to pay off its debt that is own to the company. In contrast to the direct write-off method, the allowance method is only an estimation of money that won’t be collected and is based on the entire accounts receivable account.…

Or you could have written a NSF check (not sufficient funds) and recorded the amount normally in your books, without realizing there wasn’t insufficient balance and the check bounced. You only need to reconcile bank statements if you use the accrual method of accounting. This is to confirm that all uncleared bank transactions you recorded…