Horizontal Analysis is a time series analysis technique used in financial statements to evaluate the percentage change in an account over multiple accounting periods.
A detailed exploration of house accounts, primarily managed at a firm’s main office or by an executive, distinguishing them from salesperson-handled accounts in the territory.
Inventory Shortage (Shrinkage) refers to the unexplained difference in inventory between a physical count and the amount recorded, caused by factors such as theft or normal evaporation of liquids.
A comprehensive guide to understanding and recording journal entries in an accounting journal, including detailed examples and explanations.
A comprehensive explanation of a journal entry, its types, significance in accounting, examples, and historical context.
A comprehensive explanation of a Journal Voucher, its importance, uses, and how it leads to a Journal Entry in accounting.
Journalize refers to the process of recording financial transactions in an accounting journal such as the General Journal.
An in-depth look at Liquidated Debt, including its definition, characteristics, examples, and legal considerations.
Detailed description of liquidating value, its calculation, distinctions from going-concern value, and its significance in business and finance.
A comprehensive overview of Long-Term Debt, its accounting and financial implications, including types, special considerations, examples, and related terms.
Long-Term Liabilities refer to any monetary obligations that are not required to be paid on demand or within one year. They are distinct from current liabilities, specifically the current portion of long-term debt.
Loss Carryback refers to a tax provision that allows businesses to offset current year's net losses against net income of prior years, resulting in tax refunds for previously paid taxes. This article explores the mechanics, advantages, and implications of loss carryback rules.
A comprehensive overview of 'Loss Carryover', a tax mechanism allowing businesses to apply a net operating loss to future profits.
A depreciation method in the United States for tax purposes that allows businesses to recover the cost of property over a specified life span.
A comprehensive overview of merchandise allowance, offering detailed insights into the financial adjustments provided for goods returned due to poor quality or overstocking.
Miscellaneous Income refers to revenue that is unrelated to the main business operation and usually represents a smaller proportion of total revenue. An example is revenue from vending machines in an apartment complex.
The Modified Accelerated Cost Recovery System (MACRS) is a method of depreciation introduced in 1986 to replace the Accelerated Cost Recovery System (ACRS). It provides for asset depreciation over prescribed periods using different methods such as the declining-balance for personal property and straight-line for real property.
Net Asset Value (NAV) represents the value of a mutual fund or investment fund's assets minus its liabilities, typically expressed in per-share terms.
A comprehensive guide on net income, its calculation, significance in business and tax contexts, and related terms.
An in-depth exploration of Net Operating Loss (NOL), its definitions, applications, and implications in the context of individual taxpayers and corporations, including limitations, examples, historical context, and related terms.
Understanding the concept, application, and regulations surrounding the Net Operating Loss Deduction in the context of tax filings.
Net Proceeds refer to the amount received from the sale or disposition of property, from a loan, or the sale or issuance of securities after deduction of all costs incurred in the transaction.
Net Quick Assets refer to cash, marketable securities, and accounts receivable minus current liabilities. This financial metric helps determine whether a business can meet current liabilities with readily convertible assets if sales were to cease.
A comprehensive guide to understanding nonnegotiable instruments, their types, historical context, and key differences from negotiable instruments.
Understand the concept of Note Receivable, including its definition, types, special considerations, examples, historical context, applicability, comparisons, related terms, FAQs, and more.
Explanation of occupational groups, their importance in professional settings, types, examples, and related terms.
A comprehensive definition and detailed explanation of 'Offset' as used in Accounting, Banking, Printing, and Securities.
Detailed explanation of the term 'On Order,' referring to goods that have been ordered but are not yet paid for or received.
Comprehensive understanding of P&L, also known as Profit and Loss Statement, including its importance, structure, examples, and related terms.
Padding refers to the practice of adding unnecessary material or expenses for the purpose of increasing the size or volume, such as padding an expense account to increase the company's reimbursement.
PAID STATUS refers to the customer order status that indicates whether and how an order was paid. Status types include CASH ORDER, CREDIT ORDER, claims-paid complaint, unpaid credit order, and complimentary subscription.
A comprehensive overview of Partner's Drawing accounts, focusing on their definition, types, considerations, examples, and related terms, with historical context and practical applications in partnership businesses.
The term 'Placed in Service' refers to the date when property is in a state of readiness and is available for a specific use, typically within the contexts of finance, accounting, and taxation.
An in-depth exploration of Plant Assets, which include land, buildings, machinery, and more, within the realm of fixed assets, and their importance in accounting and finance.
The Preclosing Trial Balance is an essential financial step in accounting, reflecting all balances prior to final year-end adjustments. It ensures accuracy before generating financial statements.
Detailed explanation of tax preference items, their types, historical context, and impact on tax calculations.
Comprehensive coverage of prepaid expenses, including their definition, types, tax considerations, and examples with historical and current context.
Prepayment refers to the action of paying a debt obligation before it becomes due. It is commonly seen in accounting, banking, securities, and taxation. This article explores the various aspects, benefits, and considerations of prepayment.
Private accountants are in-house professionals employed by an organization to maintain financial control and supervise the organization's accounting system. The most senior private accountant in an organization is known as the Controller.
Detailed guide on pro forma statements, their uses in financial reporting, and their importance in hypothetical financial scenarios such as mergers or proposed debt issues.
A profit center is a distinct segment or division within a business organization responsible for generating its own profits and managing its own expenses. This article explores the definition, types, considerations, and practical examples of profit centers.
A comprehensive guide to understanding Purchase Discounts, including definitions, examples, comparison with other types of discounts, and their application in various industries.
Understanding the implications and reasons behind a qualified opinion in the auditor's opinion accompanying financial statements.
An in-depth look at the concept of Realizable Value, specifically in relation to Net Realizable Value (NRV), including its definition, application, significance in accounting and finance, examples, and frequently asked questions.
An in-depth look at recapture of depreciation, including its tax implications, calculations, examples, and related terms.
Detailed explanation of receipts and receipt books, their use, importance, and structure with examples and considerations.
A detailed examination of the receiving record's role in documentation, verification, and inventory management within an organization, including its definition, types, and significance.
A comprehensive guide to the process by which taxpayers receive a return of cost through distributions or payments with respect to property, typically as part of corporate liquidation.
Understanding the Recovery Period - the duration over which an asset's cost may be depreciated for accounting and tax purposes.
An in-depth look at the slang term 'Red Ink,' commonly used to describe financial losses. Learn about its origins, usage, and implications in various financial contexts.
Revenue refers to the gross amount received by an entity from its business activities, such as sales, taxes, or services performed.
A comprehensive overview of the concept of 'Reversal' across different fields such as stock markets, accounting, business events, and legal proceedings.
A Sales Analyst in an accounting department, tracking sales by region, product, or account to ensure proper accounting and enhance profitability.
Segregation of Duties (SoD) is an internal control concept where responsibilities are divided among different individuals to prevent misuse and errors in an organization.
A comprehensive explanation of short bonds, their types, financial implications, and applications in finance.
An in-depth exploration of the term 'Short Term,' its significance in accounting, investments, and taxation.
Short-term capital gain (loss) for tax purposes, profit (loss) realized from the sale of securities or other capital assets not held long enough for a long-term capital gain (loss).
Single-entry bookkeeping is an accounting system that records transactions in only one account, without balancing debits and credits.
An explanation of the concept of stated value, its application in accounting for corporation's stock, and its distinction from market price.
An overview of the different types of statements including financial, banking, and programming statements, their characteristics, and uses.
The Statement of Cash Flow, or Cash Flow Statement, provides a detailed accounting of a company's cash inflows and outflows, categorized into operating, investing, and financing activities.
A comprehensive overview of the Statement of Condition in Banking and Finance, detailing the assets, liabilities, and equity as of a specific date.
The Statement of Income, also referred to as the Profit and Loss Statement, is a key financial document that summarizes a company's revenues, costs, and expenses within a specified period. This summary helps in determining the financial performance in terms of profit or loss.
Comprehensive overview of statistical software: features, applications, and examples including SPSS/PC and Systat.
An in-depth look at Stockholders' Equity, a critical balance sheet item that represents the book value of ownership in a corporation, including its components such as capital stock, paid-in surplus, and retained earnings.
A subtotal is the preliminary sum of multiple individual amounts, calculated before any further additions, such as taxes or discounts, are applied.
A detailed examination of Tax Audits, including their purpose, types, procedures, and implications.
A comprehensive guide to understanding the concept of Tax Basis in the field of finance, its types, applicability, and examples.
A detailed exploration of tax liability, including its definition, calculation, examples, and important considerations.
Time and Billing Software is a computer program that tracks hours spent by various functions and chargeable expenses of staff accountants for a given client. This software uses sources such as hourly rates, time sheets, practice, and time management reports to generate detailed accounting reports and client bills.
A comprehensive guide to understanding the Taxpayer Identification Number (TIN), its types, applications, importance, and related terminologies.
A comprehensive analysis of Total Cost, including definitions, formulas, types, considerations, and examples in various economic contexts.
Detailed definition and explanation of Transaction, including types, examples, historical context, applicability, and related terms.
Comprehensive explanation of unamortized premiums on investments, detailing their calculation, significance in financing, accounting treatment, and financial reporting.
Unappropriated Retained Earnings refer to portions of net income that are retained by the company after dividends have been paid out and have not been set aside for specific purposes.
Variable cost refers to the expenses that change in direct proportion to the level of production or sales volume. These costs vary with production output and include costs such as direct materials and direct labor.
Comprehensive guide on Working Capital, its components, significance, and its role in business operations.
In-depth exploration of Accounting Information Systems (AIS), covering their definition, benefits, applications, and importance in modern business environments.
Explore the detailed process of accounting, uncover its rich historical background, and understand modern job requirements in the field. Learn about recording, summarizing, and reporting financial transactions to oversight agencies, regulators, and the IRS.
A comprehensive guide to understanding Accounts Payable (AP), including examples, methods for recording, and best practices for effective management.
Explore the Alternative Minimum Tax (AMT): its definition, underlying mechanisms, historical context, and implications for taxpayers.
A detailed examination of the process of expensing the cost of an intangible asset over its projected life, including its significance, methods, and examples.
A comprehensive explanation of annualized income, its calculation formula, and practical examples to understand its application in finance and investment.
A detailed explanation of appropriation, where money is allocated for specific purposes in business and government settings. Learn about its types, examples, historical context, and applicability.
A comprehensive guide to assurance services, their definition, significance in the accounting and finance industries, and their overall impact on validation processes.
Comprehensive guide on audits, their significance in finance and accounting, and the different types of audits.
A detailed exploration of the Audit Risk Model, highlighting the components of risk assessment and its significance in auditing.
Comprehensive guide on Backlog, its implications in accounting and finance, real-world examples, and best practices for managing it.
An in-depth exploration of business expenses, their classification, tax deductibility, and practical examples to ensure accurate financial management.
Explore the concept of capital assets, their importance in business operations, and an illustrative example to better understand their role.
A comprehensive guide to understanding and analyzing common size income statements, including definitions, examples, and practical applications in financial analysis.
An in-depth exploration of corporate tax, covering its definition, associated deductions, and the mechanisms by which it operates to generate government revenue.
An in-depth exploration of day-count conventions, detailing their definitions, common types, applications, and significance in finance and investment.
Explore the concept of depreciation, its importance in accounting and tax purposes, and learn about the various methods used, complete with calculation examples.
A detailed exploration of the effective interest rate method, its rationale, benefits, and application in the amortization of discounted bonds over their life.
Enterprise Resource Planning (ERP): Comprehensive Guide, Key Components, and Real-World Applications
A detailed exploration of Enterprise Resource Planning (ERP), including its meaning, essential components, real-world examples, and impact on business operations.
An in-depth exploration of the roles, duties, skillset required, and career path of a Financial Controller, detailing how they oversee and manage a company's accounting and finance activities.
Explore the definition of fixed assets in accounting, including examples and key considerations for their management and valuation.
An in-depth article explaining the types, importance, and details of footnotes to financial statements, providing clarity on how companies arrive at their financial statement figures.
A detailed guide on Form 1045, the IRS form for claiming a quick refund for business losses. Learn who can file it, how to file it, and detailed examples and special considerations.
