Unearned Revenues Present In Statement Of Cash Flow Unearned revenues are a type of liability commonly found on a company’s balance sheet. These revenues are received in advance of the company providing goods or services to the customer. As such, they are considered to be unearned until the company has fulfilled its obligation to the … Read more
Unearned Revenue Vs Unbilled Revenue Unearned revenue refers to payments received for goods or services that have not yet been provided, while unbilled revenue refers to services that have been provided but not yet invoiced. Understanding the difference between these two types of revenue is important for accurate financial reporting and managing cash flow. Unearned … Read more
What Causes Retained Earnings to Increase or Decrease? Retained earnings, also referred to as “retained surplus”, is an accounting term defined as the portion of a company’s net income that is retained and not paid out as dividends to the stockholders. This concept is an important one for investors and analysts to understand, as it … Read more
Are Wages Fixed Or Variable Cost? Wages are payments made by employers to employees in exchange for work. They are an essential part of the economic system, and the way in which wages are classified into fixed or variable costs affects the way businesses manage their finances. This article will discuss what wage is, the … Read more
What Is a Withdrawal Slip? A withdrawal slip is a document used to record a withdrawal from a bank account. It is a document used by banks to keep track of the money withdrawn by customers from their accounts. The withdrawal slip is typically used when a customer needs to make a withdrawal in person, … Read more
What Is A Business Reference? A business reference is an evaluation of a company or individual’s business-related experience, character, and abilities. It is often used by potential employers to gain insight into an individual’s qualifications for a job or for vendors to gain insight into the creditworthiness of another business. Business references are also used … Read more
Vouching Vs Tracing Vouching Vouching is a process of examination that is used to support and verify recorded transactions and amounts. The documents that are used for this purpose are known as vouchers in accounting. This process is important to ensure that all transactions are recorded correctly, in order, and properly authorized. It helps to … Read more
Conversion Cost In Accounting Key Takeaways Conversion cost is a method of accounting used to measure the total costs associated with transforming resources into finished products. It helps identify areas for improvement and make better decisions in manufacturing companies. Conversion cost is used to calculate the incremental cost of creating a product and determine the … Read more
What Are Net Purchases In Accounting? Net purchases represent the amount of purchases made after taking into account discounts, returns, and allowances. These deductions can be made for a variety of reasons, such as when goods are returned or for promotional discounts. Tracking net purchases is important for assessing the efficiency of the purchasing department … Read more
What Is Common Stock In Balance Sheet? Key Takeaways Common stock represents ownership in a company and is an important component of the balance sheet. Common stock provides voting rights, dividends, and access to financials. Common stock carries risks with no guarantee of success and is traded on the stock market. Common stock can be … Read more