An in-depth look at accounts, encompassing definitions, historical context, types, key events, mathematical formulas, and more.
Specific methods used to confirm the accuracy of accounts receivable balances, ensuring the correctness of a company's financial statements.
An in-depth examination of accrued liability, its historical context, types, key events, importance, and more.
Detailed explanation and analysis of accumulating compensated absences, its types, importance, and related financial implications.
Adjusted Financial Statements remove one-time events or non-recurring items to present a clearer financial picture of an entity.
An adjusting journal entry (AJE) is a critical accounting procedure to ensure accurate and complete financial statements, involving adjustments for prepayments, accruals, and other timing issues.
Reimbursements occur after expenses are incurred, while advances are given beforehand. Learn the key distinctions, types, key events, and practical examples.
An in-depth exploration of advances, funds provided upfront before expenses are incurred, their types, uses, and importance in various fields.
An in-depth exploration of analytical auditing, an essential approach in auditing that compares financial and non-financial data for reasonableness. Learn about historical context, methodologies, key events, and more.
In financial audits, annotations refer to general notes or comments added to financial documents. These can range from tick marks to more comprehensive observations.
The Annual Investment Allowance (AIA) allows businesses to deduct the full value of eligible items from their profits before tax, providing a way to manage taxable income efficiently.
Understanding cost apportionment, its importance in accounting, and its application in various contexts such as cost centers and cost units.
A comprehensive overview of the Asset Revaluation Reserve, including its definition, historical context, key events, formulas, and applicability in accounting and finance.
An in-depth comparison between audits and reviews, highlighting their purposes, methods, and assurances.
A comprehensive guide to understanding auditors' remuneration, including historical context, types, key events, detailed explanations, and much more.
An in-depth look at bad debts, their impact on businesses, methods to account for them, and related financial implications.
Exploring the concept of bad debts recovered, its impact on financial statements, and related considerations.
A figure that is inserted to make one total equal another, often used in accounting to ensure that accounts balance correctly.
Understanding Below-the-Line Entries in Financial Statements
Understanding the distinction between bookkeeping and financial reporting, their historical context, key events, detailed explanations, mathematical models, and their importance in business.
In book-keeping, 'brought down' (b/d) refers to an opening balance that has been transferred from the previous period, maintaining continuity in financial records.
An in-depth examination of the concept of capitalization, its types, historical context, importance in finance and accounting, key events, mathematical models, and practical examples.
An in-depth look at carriage inwards, the delivery costs associated with goods purchased, and their impact on accounting practices and financial reporting.
In bookkeeping, 'Carried Down' (c/d) refers to the practice of transferring an amount as the opening balance in the next period.
Channel stuffing, or trade loading, is a practice where companies inflate sales figures by sending more products to distribution channels than retailers can sell, affecting financial statements and market perceptions.
An in-depth exploration of Cherry Picking, including its historical context, types, key events, mathematical models, applicability, and much more.
A compilation report involves assembling financial data without providing any assurance on the accuracy or compliance of the presented information.
A comprehensive guide on Consolidated Statement of Cash Flows, its historical context, types, key events, detailed explanations, formulas, diagrams, importance, applicability, examples, and more.
Cookies-Jarring is a method where businesses save sales for future periods to ensure consistent growth figures, a practice that is legally permissible but ethically questionable.
The practice of writing off goodwill to reserves and creating a goodwill account, which was deducted from shareholders' funds, known as dangling debit, and its cessation under Financial Reporting Standard 10.
A comprehensive guide on the debtors' ledger control account, covering its definition, historical context, types, key events, detailed explanations, formulas, charts, applicability, and related terms.
Comprehensive guide to Elimination Entries, their importance in accounting, types, applications, and related terminology.
An in-depth look at the Emerging Issues Task Force (EITF), its purpose, history, and impact on the Financial Accounting Standards Board (FASB) in addressing new accounting issues promptly and effectively.
An Engagement Letter, also known as a Letter of Engagement, is a document used by auditors to define the scope of their responsibilities and provide written confirmation of their appointment.
Comprehensive guide on revising previously issued financial statements to correct errors or misrepresentations.
Gross Presentation involves listing assets and liabilities distinctly on a balance sheet. This practice is essential in providing a clear financial picture.
An exploration into hidden reserves, off-balance-sheet funds held secretly by organizations, their historical usage, implications, and modern regulations.
An in-depth look into IFRS 8, its historical context, application, importance, and more.
Comprehensive look at Interim Reports, their significance, types, key events, examples, and comparisons with annual reports.
A detailed exploration into inventory adjustment, including its importance, types, methods, and relevance in various sectors such as finance, accounting, and management.
The presentation of financial information prepared on different bases in a columnar format to facilitate understanding by the user.
Off-balance-sheet (OBS) refers to assets or liabilities that do not appear on a company's balance sheet. These arrangements can include complex legal agreements, joint ventures, specially created subsidiaries, securitizations, and other structured finance arrangements.
Journal entries made to open a business. All the assets and liabilities must be entered into the accounts, together with the owners' capital.
A comprehensive guide on the Petty-Cash Book, a key tool for recording small cash transactions within an organization.
Preliminary expenses refer to the initial costs incurred when setting up a company, including costs associated with issuing shares. These expenses can often be written off to the share premium account.
An estimated amount set aside in a company's financial statements to cover expected tax liabilities.
An in-depth look into Purchases Ledger Control Accounts, including definitions, historical context, types, key events, and importance in accounting.
Learn the critical differences between a receipt and a voucher, two essential financial documents used in transactions and accounting.
A comprehensive guide comparing reconciliation and review processes in financial management, detailing their historical context, significance, and application.
A detailed examination of Recoverable Advance Corporation Tax (ACT), its historical context, mechanisms, and implications before its abolition in 1999.
A Registered Book-keeper is a certified member of the International Association of Book-keepers (IAB) who manages financial records and transactions with precision and adherence to international standards.
An in-depth analysis of REPO 105, the accounting practice famously used by Lehman Brothers during the financial crisis.
An overview of reserve accounting, which involves the transfer of items directly to reserves rather than through the profit and loss account, permitted in instances such as prior-period adjustments.
An in-depth exploration of revaluation, a key accounting practice to reflect current market value of assets.
A comprehensive guide to understanding the Sales Ledger Control Account, its purpose, importance, and how it fits within the larger accounting framework.
Smoothing earnings involves managing and manipulating financial statements to reduce apparent volatility in a company’s earnings over time.
An in-depth explanation of the Source and Application of Funds, including its historical context, importance, types, and key components, with illustrative examples and charts.
Specific provisions are financial reserves set aside for known liabilities, unlike general provisions which cater to anticipated but unspecified future losses.
An in-depth guide to understanding standard costing, including its historical context, implementation, and significance in modern business.
An exploration of the Standard Direct Labour Rate, its historical context, applications, and importance in accounting and management.
An in-depth exploration of stock reconciliation, including its processes, importance, methodologies, and applications in various sectors.
A Subsidiary Account is a detailed accounting record that tracks individual entries under a specific control account, enabling accurate financial tracking and reporting.
A suspense account is a temporary ledger used to record uncertain or unresolved financial transactions until they can be properly classified and allocated.
A detailed exploration of the Three-Column Cash Book, covering its structure, significance in accounting, and differences from the two-column cash book.
Valuation allowance is an accounting method used to reduce deferred tax assets when it is unlikely that those assets will be realized.
An in-depth look into the Accounts Receivable Ledger, detailing its importance, structure, and relationship with the General Ledger in accounting practices.
Capital improvement refers to a betterment to a building or equipment that extends its life or increases its usefulness or productivity. The cost of a capital improvement is added to the basis of the asset improved and then depreciated.
Carryover refers to the practice of carrying forward certain financial statements or taxable amounts to future periods, allowing businesses and individuals to more effectively manage their finances and tax liabilities.
Continuous Audit: An examination conducted on a recurring basis throughout the accounting period to detect and correct mistakes and improper accounting practices prior to the reporting year-end. A continuous audit also spreads the CPA's work throughout the year.
The drawing account is used by proprietors or partners to track their withdrawals. It is closed at year-end and the balance is transferred to the owner's equity or profit and loss account.
Understanding the End of Month: An essential financial and accounting period that includes significant activities such as the due date for receivables and closing inventory dates.
Gain contingency refers to a potential or pending development that may result in a future gain to the company. Conservative accounting practice dictates that gain contingencies should not be booked, though footnote disclosure of the particulars may be made.
A judgment sample in auditing involves the determination by an auditor, based on personal experience and familiarity with the client, of the number and particular items to be examined in a population, ensuring objectivity and thoroughness in testing the sampled items for accuracy.
Detailed exploration of off the balance sheet financial transactions, their implications, types, examples, historical context, and related terms.
The Periodic Inventory Method is an accounting process used to determine the cost of inventory sold or put into production by using data on beginning inventory, purchases, and ending inventory. This method calculates the cost of withdrawals from inventory.
An in-depth explanation of Prior Period Adjustment in accounting, focusing on the correction of errors from previous periods that should not affect current financial statements.
An overview of reimbursement, its types, implications, and related concepts such as accountable and non-accountable plans.
Comprehensive overview of Retained Earnings, Appropriated, including definitions, types, historical context, examples, and applicability.
An account used to accumulate price reductions given to customers for returned goods and defective merchandise not suited to customers' needs.
Explore the Alternative Depreciation System (ADS), its definition, uses, the differences compared to the General Depreciation System (GDS), and its applicability in various financial scenarios.
A detailed exploration of budget variance, including its definition, primary causes, types, examples, historical context, and its importance in financial management.
Comprehensive overview of Cash and Cash Equivalents (CCE), including definition, various types, and practical examples. Understand the importance of CCE in financial statements and how they impact company liquidity and operations.
A comprehensive guide to cash equivalents, their types, key features, examples, and their role in financial statements.
Explore the concept of contra accounts, their types, and practical examples. Learn how these accounts function to provide clarity in financial reporting by offsetting related accounts.
A comprehensive overview of Depreciation, Depletion, and Amortization (DD&A), including definitions, methodologies, examples, and its application in the oil and gas industry.
An in-depth exploration of funded debt, including its definition, types, accounting treatment, and significance in corporate finance.
A comprehensive guide to understanding negative confirmation, its applications in various industries, and practical examples for better comprehension.
Explore the comprehensive definition, types, and examples of non-operating expenses. Understand their impact on financial statements and business operations.
A comprehensive guide to off-balance sheet (OBS) activities, including their types, examples, implications, and real-world applications.
A comprehensive overview of one-time items, detailing their definition, advantages, and illustrative examples on financial statements.
Explore the complete definition of a receipt, its various types, IRS rules, and best practices for record-keeping and issuing receipts. Understand the significance of receipts in financial transactions and legal contexts.
An in-depth look at transfer pricing, including its definition, mechanisms, and examples, as well as its impact on accounting and taxation practices.
A comprehensive guide to understanding Unamortized Bond Discount, its definition, how it functions in financial terms, and its implications for investors and issuers.
Comprehensive guide on the general ledger, its role in double-entry accounting, examples, and best practices for maintaining financial records accurately.
A comprehensive guide exploring the concept of window dressing in finance, its applications, implications, and how it affects the perception of financial performance.
