The other class of shareholders is those who require capital gain returns from their investments. For dividend shareholders, dividends are vital in deciding where they want to invest. Similarly, for some dividend shareholders, dividends may be the only source of […]
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The Usual Sequence of Steps in the Recording Process in Accounting
You need to know about revenue recognition (when a company can record sales revenue), the matching principle (matching expenses to revenues), and the accrual principle. The general ledger serves as the eyes and ears of bookkeepers and accountants and shows […]
Continue reading »4 6: Determine and Dispose of Underapplied or Overapplied Overhead Business LibreTexts
The opposite of overapplied overhead is underapplied overhead, which occurs when a company has applied more overhead to products than it has actually incurred. Similarly, the work in process inventory account and finished goods inventory account will also be added […]
Continue reading »Reconcile an account in QuickBooks Online
If there are transactions that haven’t cleared your bank yet and aren’t on your statement, wait to enter them. If they match, put a checkmark next to the amount. However, businesses with high transaction volumes might benefit from more frequent […]
Continue reading »Reconciliation Finance, Definition, Process, Methods
For example, while performing an account reconciliation for a cash account, it may be noted that the general ledger balance is $500,000. Still, the supporting documentation (i.e., a bank statement) says the bank account has a balance of $520,000. Account […]
Continue reading »First-in, first-out FIFO method in perpetual inventory system
Not only is net income often higher under FIFO but inventory is often larger as well. Typical economic situations involve inflationary markets and rising prices. The oldest costs will theoretically be priced lower than the most recent inventory purchased at […]
Continue reading »How To Calculate Internal Rate of Return IRR in Excel and Google Sheets
By unconventional, we mean a stream that has more than 1 negative cash flow. You’ll want to use the “pmt” option when you’ve got an annuity stream of cash flows. Remember that the Net Present Value and the discount rate have […]
Continue reading »retained earnings definition and meaning
We empower accounting teams to work more efficiently, accurately, and collaboratively, enabling them to add greater value to their organizations’ accounting processes. Double Entry Bookkeeping is here to provide you with free online information to help you learn and understand […]
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