Accounting Articles

Manufacturing Financial Statements

Goods are transferred to the trading account at a value which the business would have paid had these goods been bought from other manufacturers. When preparing the income statement, the enhanced cost of production is taken into account to compute the. Read more

What are corporate budgeting exercises?

Determine the static budget and use the information to prepare a flexible budget and analysis for the 8,000 units actually sold. Determine the static budget and use the information to prepare a flexible budget and analysis for the \(6,000\) units actually. Read more

How to record the disposal of assets

To record the transaction, debit Accumulated Depreciation for its $35,000 credit balance and credit Truck for its $35,000 debit balance. The company recognizes a gain if the cash or trade-in allowance received is greater than the book value of the asset.. Read more

The difference between assets and liabilities

It will definitely be part of the application process along with proof of employment. Knowing where you stand ahead of time will prevent surprises at the bank. Doing your own inventory may also prompt you to prepare your finances before going. Read more

Average Cost Method Formula + Calculator

We provide definitions, formulas, examples, expert advice and comparison charts to help you understand the concepts. The Average Cost Method assigns inventory costs using a weighted average approach, wherein the costs of production are added and divided by the number of items. Read more

Depreciation Tax Shield Calculation

Dive into how we made our CPA review course a better tool than the outdated methods you’re used to seeing. For example, if the profit of the organization is $ 500,000 before depreciation and depreciation is $ 200,000 and the applicable. Read more

Asset To Equity Ratio

Calculating the assets-to-equity ratio is easy because it only requires arithmetic operations, and the data is already available in the financial statements. Total assets include short-term and long-term assets, both tangible and intangible. Also, if a business has a high ratio,. Read more