July 03, 2021
Charles Lutwidge
Expense Recognition Principle: Meaning and Importance
In the modern business world, all enterprises, regardless of their type and form of ownership, maintain accounting records of business operations in accordance with the current legislation. Consequently, in the course of the organization’s activities, expenses are always an inevitable...
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July 02, 2021
Charles Lutwidge
What is Tax Shield?
Overview Tax payments is a topic that you get familiar with as soon as you get your first job or start your own business. Many find the tax payments to be a big burden for them financially in addition to...
July 01, 2021
Charles Lutwidge
What Is Depreciation Tax Shield?
Depreciation Depreciation is an accounting method that calculates the life and wear value of tangible assets, and the tangible value of these assets is included in parts in the cost of the final product or service. We can say that...
June 30, 2021
Charles Lutwidge
Post Closing Trial Balance
Business accounting is an integral part of the business process and should be treated with special responsibility. Recordkeeping includes the following main points: preparation of the necessary documentation; data processing; preparation of financial statements; contacting regulatory authorities and financial institutions....
June 27, 2021
Charles Lutwidge
What Is Net Sales and How to Calculate It?
Sales volume is the main indicator of the company’s performance. It can be expressed in the actual number of units of products sold or in the total amount of funds received on the firm’s account after the sale of goods....
June 26, 2021
Charles Lutwidge
Product Cost Meaning and Calculation
Overview Any business activity involves costs. The company’s finances are spent on diverse processes and purchases necessary for the making of products, maintenance of equipment, the purchase of raw materials, packaging, transportation, as well as on management processes, not to...
June 25, 2021
Charles Lutwidge
Classified Balance Sheet
Overview A Balance Sheet is a document that you will see in every business. In different countries, it is customary to draw up this financial statement in different forms, but the essence does not change. The main differences lie in...
June 24, 2021
Charles Lutwidge
What Are the Main Income Statement Accounts?
In today’s article, we are going to review the main accounts that are found on one of the financial statements prepared by the businesses, the Income statement. Trading Account The trading account category deals with the price of goods sold...
