First and foremost: if you’re going to be the accountant for your own business, you’ll need to grasp the basic accounting principles. While we could go on forever on various accounting topics, there are a few key points to remember. First and foremost, understand the purpose of accounting...
One important driving force for changes in accounting is financial crises that create public scandals. After a public scandal changes are launched to prevent history to repeat itself. One alternative to scandals as a driving farce for changes is a public debate, because it can illustrate problems ...
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Accounts Receivables Turnover refers to how a business uses its assets. The receivables turnover ratio is an accounting method used to quantify how effectively a business extendscreditand collects debts on that credit. To calculate the Accounts Receivable Turnover divide the net value of credit sale...
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Environmental Accounting The field of environmental accounting is one that has continued to grow at a steady rate over the past few years as more and more specialized accountants are needed to analyze the costs associated with pollution prevention. These costs are often compared fines, missed tax ...
Time savings: You won’t have to wait for someone else to complete the accounting tasks you require. With accounting software, you can do it yourself, with all the tools you’ll need close at hand. Automatic records: As new transactions occur, accounting software will dynamically create and ...
The Financial Accounting Standards Board (FASB), which sets standards for GAAP rules, was considering a change to how goodwill impairment is calculated. FASB was considering reverting to an older method called "goodwillamortization" due to the subjectivity of goodwill impairment and the cost of te...
The general concept ofaccrual accountingis that accounting journal entries are made when a good or service is provided rather than when payment is made or received. Entries are also made for debts and payments due. This method allows the current and futurecash inflows or outflowsto be combined...