September 25, 2020
Charles Lutwidge
Dividends Account – Explanation and Example
Definition Every once in awhile, a company may decide to distribute some of its earnings to its stockholders/shareholders. In financial accounting, they are referred to as dividends. They can happen frequently, such as every quarter, or a corporation may decide...
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September 25, 2020
Charles Lutwidge
What is a Trial Balance?
Definition By definition, a Trial Balance is not a formal financial statement. It is merely the ledger accounts listed along with their respective closing debit or credit (normal) balances on a certain date. Other financial statements are usually prepared after...
September 02, 2020
Charles Lutwidge
Manufacturing Overhead Costs
Any business activity involves costs. Money is spent on diverse processes and purchases: equipment maintenance, raw materials, packaging, transportation, etc. Three are also costs associated with management processes, where wages and salaries are a big percentage of these spendings. Such...
September 02, 2020
Charles Lutwidge
Gross vs. Net Income
Sometimes, people, including business owners, get gross and net income confused. Thus, being able to tell the difference allows one to properly evaluate accounting reports, make financial plans, know what to provide when asked for one or the other, and...
September 02, 2020
Charles Lutwidge
A Simple Explanation of Straight Line Depreciation
Definition and Formula The method of accounting for the allocation of costs of any physical or tangible asset during its useful life is known as depreciation. These costs arise due to: Use Wear and tear The passing of time Obsolescence....
September 02, 2020
Charles Lutwidge
Internal Controls in Accounting
What are Internal Controls? Let’s first look at the definition of internal controls in accounting. Internal control is a management process involving the people of the organization (the responsibility lies with management and the board of directors). Every company has...
September 02, 2020
Charles Lutwidge
Accounting in Banks Simplified
Most people are confused by bank accounting. We know how a company accounting works because a lot of us have more or less experience with it. Bank accounting is different. At the same time, we are sure you will find...
September 02, 2020
Charles Lutwidge
Small Business Guide for Invoice Payment Terms
Invoice Basics A business is setting up its expectations ahead with invoice payment terms. To do this you need to make sure that you cover exactly how and when you expect to be paid. So what do you do? You...
