Category Archives: Bookkeeping

Sales account planning: a step-by-step guide

The primary concern of having a sales account is that it increases the credibility in business transactions. Reliability is of importance, especially in large and medium scale businesses where several transactions happening every day are enormous. In such cases, whenever asked, the company should be able to produce the details of the transaction. After all, […]

Direct and Indirect Costs Managerial Accounting

To account for these and inform managers making decisions, the costs are tracked in a cost accounting system. The method of allocating indirect material costs can vary depending on the accounting practices of a business. ABC assigns indirect costs to products based on the activities that generate costs instead of merely spreading them across all […]

The 5 Biggest CPA Exam Costs & License Fees 2024 Update

CPAs who specialize in a particular industry, such as healthcare or technology, may also charge a higher rate due to their specialized knowledge and expertise. Each section of the CPA Exam consists of multiple-choice questions, task-based simulations, and a written communication component (BEC section only). The IRS assembled some of the numbers from the National […]

What is meant by accounts written off?

An expense write-off will usually increase expenses on an income statement which leads to a lower profit and lower taxable income. Accounts written off are those invoices to customers that are considered uncollectible, and which have therefore been removed from the accounts receivable account. Doing so reduces the accounts receivable report to just those customer […]

Types of Accounts: Modern and Traditional Classifications

Accounts payable (AP) are considered liabilities and not expenses. Because accounts payables are expenses you have incurred but not yet paid for. The bank account is a real account but not a personal or nominal one. Maintaining accounts time-to-time helps business personnel in quick decision-making accounts help them to analyze the transactions regarding their expenses, […]

Direct and Indirect Costs Managerial Accounting

To account for these and inform managers making decisions, the costs are tracked in a cost accounting system. The method of allocating indirect material costs can vary depending on the accounting practices of a business. ABC assigns indirect costs to products based on the activities that generate costs instead of merely spreading them across all […]

What is a Break-Even Point and How to Calculate

This calculation demonstrates that Hicks would need to sell 725 units at $100 a unit to generate $72,500 in sales to earn $24,000 in after-tax profits. Since we earlier determined $24,000 after-tax equals $40,000 before-tax if the tax rate is 40%, we simply use the break-even at a desired profit formula to determine the target […]

What is meant by accounts written off?

An expense write-off will usually increase expenses on an income statement which leads to a lower profit and lower taxable income. Accounts written off are those invoices to customers that are considered uncollectible, and which have therefore been removed from the accounts receivable account. Doing so reduces the accounts receivable report to just those customer […]

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