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The straight line method of depreciation is the simplest way to compute the depreciation of property, plant and equipment. It is used widely across different organizations due to its easy computation and presentation. In this article, we would take a look at 3 different problems in order to get acquainted on how to compute depreciation on a straight line basis.
Published by Lindbergh Lendl Soriano 73 months ago in Accounting & Finance | +3 votes | 0 comments
Each of us play an important role in our lives. Choosing a profession is comparable to choosing the role you want to play in the community. Accounting is a recognized profession like law, architecture, engineering, medicine, pharmacy, and nursing. It is a very versatile profession as those who are knowledgeable in accounting could venture into different areas and fields. However, there are certain areas of specialization that accountants enter into.
Published by Lindbergh Lendl Soriano 73 months ago in Accounting & Finance | +2 votes | 0 comments
Accruals and Deferrals in Financial Accounting are taken up in order to reflect income when earned and expenses when incurred. Adjusting entries are usually posted to reflect Accruals and Deferrals. Accruals and Deferrals are relevant concepts in Financial Accounting as a major principle in the Generally Accepted Accounting Principles (GAAP).
Published by Jeanette Dolotina 73 months ago in Accounting & Finance | +0 votes | 0 comments
We may not know it, but all around us, people are using accounting information. From the most complex corporate transactions to the simplest business dealings, accounting information is always used. Even in our homes, when we are at work, when we are at school, or wherever we may be, accounting information could be vital.
Published by Lindbergh Lendl Soriano 73 months ago in Accounting & Finance | +2 votes | 0 comments
Cash receipts, sometimes called cash inflow, or simply receipts is the amount of cash that an entity acquires for a certain time period. Cash disbursements, sometimes called cash outflow, or simply disbursements or payments is the amount of money that a company parts with. Cash disbursements are cash outlays of an entity. Given the double entry system, should cash receipts equal cash disbursements?
Published by Lindbergh Lendl Soriano 73 months ago in Accounting & Finance | +2 votes | 0 comments
Financial Accounting Adjustments or Adjusting Entries are taken up to reflect the accuracy and timeliness of the Financial Statements. Accounting Adjustments are posted to properly recognize Revenue and Expenses. Deferrals, Accruals and Erroneous Entry should be adjusted in accordance with the Generally Accepted Accounting Principles on Revenue Recognition and Matching Principle.
Published by Jeanette Dolotina 73 months ago in Accounting & Finance | +1 votes | 0 comments
Every profession needs a specific set of skills in order to properly function in their specific field. Likewise, the accountancy profession needs a wide range of skill set in order to appropriately perform the duties and responsibilities required by the various business organizations. Getting acquainted with these various skills as well as developing them would further increase the credibility of accountancy graduates.
Published by Lindbergh Lendl Soriano 74 months ago in Accounting & Finance | +4 votes | 1 comments
The accountancy course is very broad. Different knowledge and skills are needed in order to pass the program. Because of this, accountancy graduates are assumed to be thoroughly equipped with knowledge that would be useful in the business world. They should be very well equipped with general knowledge, organizational knowledge, IT knowledge, accounting knowledge and taxation knowledge.
Published by Lindbergh Lendl Soriano 74 months ago in Accounting & Finance | +4 votes | 0 comments
Bachelor of Science in Accountancy is one of the most difficult courses to pass in college. The course primarily deals with numbers and computations. Problems are encountered in almost about every accounting subject. Of all the subjects that a student must undergo in the accountancy program, five of the hardest accounting subjects were determined. Provided in this article are the accounting subjects that students have difficulty with and the topics associated with each subject.
Published by Lindbergh Lendl Soriano 74 months ago in Accounting & Finance | +5 votes | 5 comments
In Financial Accounting, Depreciation, Amortization and Depletion have one major purpose, that is, to allocate the cost of an asset over its useful life. However, how does one differentiate Depreciation from Amortization and Depletion when they have the same major purpose? They generally differ on the category of asset to which they belong.
Published by Jeanette Dolotina 74 months ago in Accounting & Finance | +2 votes | 1 comments
The Dow Theory is a set of principles and ideas intended to explain the basic relationship between the stock market and general trends within the economy. It was developed by Charles Henry Dow (1851-1902) - founder and first editor of the Wall Street Journal. The Theory also provided a baseline on which future theories would expand upon. One of those theories we know today as 'Technical Analysis'.
Published by Rynhardt Jordaan 74 months ago in Accounting & Finance | +2 votes | 1 comments
When a portion of the Accounts Receivable remains uncollected over a specified period of time, Bad Debts should be recognized. Allowance for Doubtful Accounts is determined using the Allowance Method of recognizing bad debts. The generally accepted procedure in the accounting treatment for bad debts should be carefully identified and implemented.
Published by Jeanette Dolotina 74 months ago in Accounting & Finance | +3 votes | 3 comments
This article basically dwels in depth on possible and positive means and ways on how one can combat bad spending habits and significantly cut down on costs and unnecessary expenses. It itemizes four basic measures on how the solutions can be realized and also gives further information on relevant ways of making the best out of your money.
Published by Robert Kimani 234 months ago in Accounting & Finance | +0 votes | 0 comments
This article basically dwels in depth on possible and positive means and ways on how one can combat bad spending habits and significantly cut down on costs and unnecessary expenses. It itemizes four basic measures on how the solutions can be realized and also gives further information on relevant ways of making the best out of your money.
Published by Robert Kimani 74 months ago in Accounting & Finance | +1 votes | 2 comments
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