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

Basic Bank Services

This first section explains basic bank services. We include the bank account, bank deposits, and cheques. Each of these services contributes to either or both the con­trol or safeguarding of cash.

Bank Account

A bank account is a record set up by a bank for a customer, permitting this customer to deposit money for safeguarding and cheque withdrawals. (more…)

Banking Activities as Controls

Banks are used by most companies for many different services. One of their most important services is helping companies control cash and cash transactions. Banks safeguard cash, provide detailed and independent records of cash transac­tions, and are a source of cash financing. (more…)

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…)

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…)

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…)

3 Essential Tools for Starting and Maintaining a Small Business

We believe that there are 3 factors that drive the success of small businesses.

1) Acquiring start-up capital .
2) Finding customers .
3) Accounting for, budgeting and controlling sales and expenses.

The following resources will help your small business achieve these success factors.

Acquiring Start-Up Capital.

An adequate supply of capital is essential as many profitable businesses fail because they don’t have enough cash to pay their employees and suppliers. (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…)