Category: Bookkeeping 101

The easiest way to apply Accounting is to use the Number Format menu on the ribbon. When you apply the Currency format to a number, the currency symbol appears right next to the first digit in the cell. You can specify the number of decimal places that you want to use, whether you want to use a thousands separator, and how you want to display negative numbers. In the Format Cells dialog box, in the Category list, click Currency or Accounting.

Like the Currency format, the Accounting format is used for monetary values. But, this format aligns the currency symbols and decimal points of numbers in a column. In addition, the Accounting format displays zeros as dashes and negative numbers in parentheses. Like the Currency format, you Continue reading “Format a table”

The lawyer has an obligation not knowingly to participate in any violation by the client of the disclosure requirements of the securities laws. In appropriate circumstances, the lawyer also may be required under the Code of Professional Responsibility to resign his engagement if his advice concerning disclosures is disregarded by the client. In response to an auditor’s request for disclosure of loss contingencies of a client, it is appropriate for the lawyer’s response to indicate that the response is limited to items which are considered individually or collectively material to the presentation of the client’s financial statements. Please specifically confirm to our auditors that our understanding is correct.

Statement Notes

Consequently, Continue reading “Accounting Guidelines for Contingent Liabilities”

Electronic invoicing allows vendors to submit invoices over the internet and have those invoices automatically routed and processed. Because invoice arrival and presentation is almost immediate invoices are paid sooner; therefore, the amount of time and money it takes to process these invoices is greatly reduced. These applications are tied to databases which archive transaction information between trading partners. (US Bank, Scott Hesse, 2010) The invoices may be submitted in a number of ways, including EDI, CSV, or XML uploads, PDF files, or online invoice templates.

Examples of accounts payable include accounting services, legal services, supplies, and utilities. Accounts payable are usually reported in a business’ balance sheet Continue reading “Is Accounts Payable a Credit or Debit?”

Using estimated rates of return, you can compare the value of the annuity payments to the lump sum. The present value interest factor may only be calculated if the annuity payments are for a predetermined amount spanning a predetermined range of time.

One of the big selling points for a fixed annuity is that it is actually an insurance contract, and as such, it is based upon guarantees made by the insurance company. A big part of an annuity is a guarantee that you will continue to receive an income, no matter how the stock market performs or how long you will live. However, the insurance company will charge a large fee to make this guarantee and sometimes even keep any remaining funds if you die before the amount deposited has been Continue reading “What Is the Present Value of Annuity?”

If the employee earns 80 hours of PTO per year and gets paid every two weeks, he will earn 3.08 hours of PTO each pay period. He will earn 3.33 hours of PTO if the company pays employees twice monthly, and 1.54 hours each pay period if the company has weekly payroll. Only CPAs, tax attorneys, and Enrolled Agents are able to represent a taxpayer before the IRS. As a career that requires an analytical mindset, an accountant offers accurate financial record reporting and in-depth analysis of financial matters. This occupation often serves in a supporting role to a company’s chief financial officer.

Experience

Certain accounting positions require on-the-job travel time while others require little or no travel. External auditors often Continue reading “What does an accountant do?”

This can include monthly charges or charges from overdrawing your account. If you’ve earned any interest on your bank account balance, they must be added to the cash account. Match the deposits in the business records with those in the bank statement. Compare the amount of each deposit recorded in the debit side of the bank column of the cashbook with credit side of the bank statement and credit side of the bank column with the debit side of the bank statement. In accounting, reconciliation is the process of ensuring that two sets of records (usually the balances of two accounts) are in agreement.

If the Income Summary has a debit balance, the amount is the company’s net loss. The Income Summary will be closed with a credit for Continue reading “Summary Journal Entries Introduction”

Petty Cash

When your account reaches the low balance threshold, you may see a yellow light while driving through the toll lanes. That night, we will process a payment equal to your replenishment amount.

The petty cash account should be reconciled and replenished every month to ensure the account is balanced and any variances are accounted for. The accountant should write a check made out to “Petty Cash” for the amount of expenses paid for with the petty cash that month to bring Continue reading “Md. Cracking Down On Toll Jumpers Going Through E-Z Lanes With No Pass — CBS Baltimore”

The FASB’s Statement of Financial Accounting Standards No. 162 provides a detailed explanation of the hierarchy. Some of the basic accounting terms that you will learn include revenues, expenses, assets, liabilities, income statement, balance sheet, and statement of cash flows. You will become familiar with accounting debits and credits as we show you how to record transactions.

accounting

In cash-basis accounting, cash earnings include checks, credit-card receipts, or any other form of revenue from customers. GAAP is a common set of accounting principles, standards, and procedures that public companies in the U.S. must follow when they compile their financial statements. International Accounting Standards are an older set of standards Continue reading “Accountant job description”

The total amount of contributed capital or paid-in-capital represents their stake or ownership in the company. Share premium can be money received for the sale of either common or preferred stock. A balance is recorded in this account only when there’s a direct share sale from the company, usually from a capital raise orinitial public offering.

The common stock account is also known as share capital account, and the additional Continue reading “Difference Between Share Capital and Share Premium”