Bookkeeping Jobs: Disappearing or Evolving with Technology? Many hold advanced degrees, such as MBAs with accounting or finance concentrations, or they have Master of Accountancy degrees. To sit for the Certified Public Accountant, or CPA exam, which is a common goal of many accountants, you must have a minimum of 150 postsecondary education hours. This…
Financial accounting is the process of recording, summarizing and reporting the myriad of a company’s transactions to provide an accurate picture of its financial position. Revenue recognition is a generally accepted accounting principle (GAAP) that identifies the specific conditions in which revenue is recognized. Statements of Financial Accounting Standards were published by the Financial Accounting…
The accrued wages account is a liability account, and so appears in the balance sheet. If the amount is payable within one year, then this line item is classified as a current liability on the balance sheet. If you record an accrual for revenue that you have not yet billed, then you are crediting the…
Bad Debts and Doubtful Debts IMPACT OF THE BAD DEBT EXPENSE ON YOUR FINANCIAL STATEMENTS When accountants decide to use a different rate for each age category of receivables, they prepare an aging schedule. An aging schedule classifies accounts receivable according to how long they have been outstanding and uses a different uncollectibility percentage rate…
Advantages of Accrual Accounting Every business has to record all its financial transactions in a ledger—otherwise known as bookkeeping. You’ll need to do this if you want to claim tax deductions at the end of the year. And you’ll need one central place to add up all your income and expenses (you’ll need this info…