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Category Archives: Accounting
Understanding Short-Term Securities and Liabilities
Trading Securities. Debt and equity securities purchased with excessive cash for the purpose of resale in the near term. As such, they are current assets. They are reported at fair market value using the mark-to-market method. The accountant will make … Continue reading
How To Depreciate Long-Term Assets?
Land. Includes purchase price, real estate commissions, closing costs, attorney fees, recording fees, land use due diligence, clearing, grading, filling, landscaping, special assessments (pavement and sewer). Improvements with limited lifespans such as fences and parking would go under Land … Continue reading
Understanding Basic Cost Accounting
In accounting terms, the term cost does not equate to the meaning of expense. A cost item requires the expenditure of resources to generate revenue during a specific period of time. Asset Costs/Unexpired Cost. Expending resources or incurring liabilities to … Continue reading
Posted in Accounting
Tagged asset costs, capitalized cost, cost drivers, cost objects, differential costs, direct labor, direct vs. indirect costs, inventoriable costs, manufacturing costs, manufacturing overhead, opportunity costs, period expenses, product costs, raw materials, sunk costs, understanding basic cost accounting, unexpired costs
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How To Prepare Financial Statements Without Quickbooks
The accounting cycle is the process from a when a business transaction occurs all the way to the financial statement preparation process. Step 1: Identify a business transaction and find the supporting source document such as a receipt or invoice. … Continue reading
