March 30, 2021
Charles Lutwidge
Meaning and Example of Credit Memo
When dealing with merchandise inventory, you might hear the term credit memo. What is the definition of a credit memo? What are these memos for? Let’s get to the bottom of it. Definition and meaning The definition of the term...
Delegate your financial records to a highly qualified bookkeeper and forget about bookkeeping stress forever.
March 30, 2021
Charles Lutwidge
Activity-Based Costing
Definition and Explanation The definition of activity-based costing is a management accounting approach to the costing and monitoring of activities which involves identifying the activities the bring about specific costs. It is a costing system that focuses on activities performed...
March 30, 2021
Charles Lutwidge
Standard Costing Meaning and How It Works
Definition What is the definition of standard costing? This is an accounting system based on the determination in advance of what the good should cost to produce and revenue per unit. In other words, the standard cost is a cost...
March 30, 2021
Charles Lutwidge
Plant Assets: Explanation and Examples
The effective functioning of a company is possible with the availability of certain economic resources used for the production of products or the provision of services. In the financial world, everything that a firm has and uses in production is...
March 30, 2021
Charles Lutwidge
How to Calculate Sales Tax: Step-by-Step Guide
Are you a small business owner that wants to better understand how to calculate sales tax? Maybe you are a consumer who wants to know how to calculate sales tax and know how much the product will end up actually...
March 30, 2021
Charles Lutwidge
Explanation of Cash Flow and Its Importance
Undoubtedly, the main indicator of the effectiveness of any business is its income and profitability. However, there is one more accounting indicator that can be used to judge the company’s success – this is cash flow. Looking at it, you...
March 30, 2021
Charles Lutwidge
Outstanding Checks: Definition and How to deal with them
Definition The definition of outstanding checks is checks written by us and sent to the payee. If the payee has not deposited the check, it will not be reflected in our bank account and stay outstanding. It is considered to...
March 30, 2021
Charles Lutwidge
Matching Principle: Definition and Importance
Definition The matching principle is an international accounting principle, which means that all the revenues should be attributed to the period of sale, delivery of goods and provision of services and that only those expenses are recorded in the reporting...
