June 11, 2021
Charles Lutwidge
Simple Explanation of the Periodic Inventory System
Inventory is a way of verifying the actual availability of valuables listed in the organization’s accounting records, their condition and correct storage, and so on with accounting data. The purpose of the inventory is to ensure the reliability of accounting...
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June 07, 2021
Charles Lutwidge
The Beginner’s Tutorial to Bookkeeping
Bookkeeping in its essence is the activity of keeping a record of economic activities transactions of a company in a documentary form. It facilitates the management of economic activities, payment of salaries, calculation and payment of taxes, and other mandatory...
June 06, 2021
Charles Lutwidge
Accrued Payroll Explanation
Definition Every business owner will likely come across the term accrued payroll sooner or later. As you probably know, wages and salaries mean the same thing. This is the amount you pay your employees. At the same time, wages may...
June 05, 2021
Charles Lutwidge
LIFO Reserve Explained with Example
Definition It often happens that companies choose to have the accounting records to be maintained based on methods that are not allowed by the law to be used for reports meant for tax returns or financing. Yet, these methods often...
June 04, 2021
Charles Lutwidge
What Is the Payback Period?
The return on investment comes with complex planning, accounting, calculation, and analysis process. To get a return on investment, you need to have experience and certain knowledge, otherwise, this task will be very difficult. Each investor is interested when their...
June 03, 2021
Charles Lutwidge
Units of Production Method of Depreciation: Explanation and Calculation
Definition One of the main tasks of the business owners, especially in the current conditions, is to preserve the financial capabilities of the enterprise – to pay wages, vacation and other payments to employees, taxes to the budget, and solve...
May 29, 2021
Charles Lutwidge
An Easy to Understand Explanation of a Debit Memo with an Example
Overview When dealing with merchandise inventory, some of the new terminology you might come across is debit and credit memo. What exactly does a debit memo mean? When a buyer purchases something from a business on a credit, both make...
May 28, 2021
Charles Lutwidge
What Are Investing Activities in Accounting?
Definition Investing activities are a type of cash flow activities. Accordingly, you will see an investing activities section in the cash flow financial statement. They reflect changes to fixed assets, meaning transactions that increase and decrease the company’s long-term assets....
