Accounting. Online Accounting Help. Online Accounting. Online Accounting System. History of Accounting. General Accounting

Internal Auditor

You are an internal auditor for a company. You are currently making surprise counts of three $200 petty cash funds. You arrive at the office of one of the petty cashiers while she is on the telephone. You explain the purpose of your visit, and the petty cashier asks politely that you come back after lunch so that she can finish the business she’s conducting by long distance. (more…)

Accounting Comparisons

Recall that under a perpetual system, the Merchandise Inventory account is updated after each purchase and each sale. The Cost of Goods Sold account is also updated after each sale so that during the period the account balance reflects the periods total cost of goods sold to date. (more…)

Periodic Inventory System

A periodic inventory system requires updating the inventory account only at the end of a period to reflect the quantity and cost of both goods on hand and goods sold. It does not require continual updating of the inventory account. The com­pany records the cost of new merchandise in a temporary expense account called Purchases. (more…)

Recording Prepaid Expenses in Expense Accounts.

We explained that prepaid expenses are assets when they are purchased and are recorded with debits to asset accounts. Adjusting entries transfer the costs that expire to expense accounts at the end of an accounting period. (more…)

Statement of Owner’s Equity.

The second report in Exhibit 2.11 is the statement of owner’s equity for Finlay Interiors. Its heading lists the month as January 2001 because this statement describes events that happened during that month. The beginning balance of equity is measured as of the start of business on January Lit is zero because Finlay Interiors did not exist before then. (more…)

9 Strategies for Writing Accounts Payable Procedures.

The white flag is just a nose away…toward the Million dollar prize in cash savings for your business…

So far, in Inventory and Accounts Receivable, we’ve found $250,000 each in cash savings. Then we found another 250K in Sales and Marketing. And so, now, Accounts Payable is the final process within the Cash to Cash Cycle – and also the final $250,000. (more…)

7 Things to Consider Before Buying Small Business Accounting Software.

The world of small business accounting software can be a minefield for any business owner. However choosing the right package is one of the most critical business decisions you will make.Here  are the seven things you must consider before making a purchase that will help you achieve your businesses goals.

1. Scalability.

Businesses change over time so it’s critical that the small business accounting software you choose can change too. Some things that often change are the number of products and services offered and the number of employees. (more…)

Who created accounting principles?

Who sets and revises accounting standards?

What if you don’t follow all the rules, do you go to jail?

Is there an accounting police force that investigates and arrests violators?

It would seem that there must be some regulatory force to make sure that providers of financial statements conform to the rules. There is, up to a point, and here is how it works:

Mainly, it’s all voluntary and it works pretty well. First, double-entry accounting originated in Italy in the 1400’s, so its been around awhile. Accounting principles have evolved over the years just as have accounting standards. The reason why the system works is that the business community could not function if there was not commonality and consistency in financial statement reporting. (more…)