Owner’s draws are withdrawals of a sole proprietorship’s cash or other assets made by the owner for the owner’s personal use. The account in which the draws are recorded is a contra owner’s capital account or contra owner’s equity account since its debit balance is contrary to the ...
Define the accounting equation and explain briefly what it entails. What do you understand by a general ledger account? What do you understand by preferred stock in accounting? What is meant by accrual accounting? What is 'creative accounting?' Explain. ...
What is meant by the "accrual method" of accounting? Explain accrual accounting and why a business may choose to adopt this approach over cash basis accounting. What is 'de-professionalization' of accounting? Explain. In accounting, what is the meaning of equity...
In accounting, the term relevant range usually refers to a normal range of volume or normal amount of activity in which the total amount of a company’s fixed costs will not change as the volume or amount of activity changes. The term relevant range is included in the definition of fixed ...
Managerial accounting involves planning, organizing, and controlling. Explain these activities and then explain why these phases are referred to as a continuous cycle? What do you understand by the term accounting? What is the system development life cycle? What is meant by the term 'payback perio...
What is meant by capital planning? Describe two major factors that a portfolio manager should consider before designing an investment strategy. What types of decisions can a manager make to achieve these goals? The goal of the financial manager in a profit-seeking organization is to maximize what...
any material inconsistencies in the financial statements. Internal audits are used to make managerial changes and improvements to internal processes and controls. The purpose is to promote compliance with laws and regulations and to help maintain accurate and timely financial reporting and data collection...
Furthermore, besides being a security risk, sending vital financial data around manually is time-consuming and inhibits the team from accessing the most up-to-date information and using it to make timely decisions. By the time the email has circulated and all stakeholders have responded, there ...
1. Explain what is meant by term ‘Capital Investment’ and how a business decides which project to invest in 2. State the two main methods that you need to be able to calculate and use for appraising Capital Investment 3. Calculate Payback Periods and list the advantages and disadvantages ...
Students Have Also Explored These Related Accounting Questions! Q: Accounting is sometime described as the language of business. What is meant by this description? To what extent businesses employ accounting practices for better and accurate accounting financial... ...