P: With the move toward a global economy, English has become the most widely used language in the world. It is the language of business, aviation, science and international affairs and people find that they must learn English to compete in those fields. I: And do people find English an e...
The warranty liability may appear to be too high (or too low) at some point in time. If the liability turns out to be too low, additional expenses need to be booked. (See Dell’s 4.1 million laptop battery recall program, for example.) If the liability is too high, some of the ex...
Article continues below this ad Internal Controls A sound, reliable audit trail typically draws on corporate internal controls that are effective, adequate, adapted to operating activities and in line with regulatory guidelines. A control is a medley of policies, procedures and mechanisms a company re...
Managerial Accounting Information In order for the managers of a company to make the best decisions for a company they need to have specific information prepared. They use this information for three main management functions: planning, implementation and control. Financial information is used to set ...
In business aline of creditorcredit lineis an arrangement/commitment by a bank or othercreditorwith a customer. The agreement specifies an amount that the customer can borrow or use in the future, assuming that the customer’s financial condition is maintained. ...
respectively) in your account ledger using a T-account, where debits are recorded on the left-hand side of the “T” and credits on the right-hand side. This is actually where double-entry bookkeeping gets its name: each transaction requires both a debit and a credit entry in the account...
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Thebottom line, or net income, of a company, does not carry over from one accounting period to the next on the income statement. Accounting entries are made to close all temporary accounts, including all revenue and expense accounts, at the end of the period. Upon the closing of these acc...
Above-the-line costs include all costs above the gross profit, while below-the-line costs include costs below gross profit. Above-the-line costs are often referred to as the cost of goods sold (COGS), while below-the-line is operating and interest expenses and taxes. This definition mostly...
Undergenerally accepted accounting principles(GAAP), assets are considered to be impaired when their fair value falls below their book value.6 Any write-off due to an impairment loss can have adverse effects on a company's balance sheet and its resultingfinancial ratios. It is, therefore, import...