Guidance and Knowledge for Value Investors
Class accounting breaks down sales and the associated cost of sales into functional groups. Whether you use divisions or departments or product/service lines class accounting allows you to identify those more profitable areas of operations. This is just one of the many different financial reports used in small business.
Just like a manufacturing assembly line, the human resources department uses a process to find potential candidates, recruit qualified applicants, interview, hire and train the best person for the respected position.
Micro businesses are all around us. Often overlooked and rarely given a second thought they are the backbone of our economic system. From the local beauty salon to the Mom and Pop pizza shop; micro businesses are everywhere. Micro business is defined as the small closely held operation that provides a family a supplemental or primary source of income.
A control account in the Chart of Accounts is used when there is a need to separate multiple third parties with a similar function. Work in process works perfectly as a control account.
Contra information is always reported in parenthesis. Other financial information is also reported using parenthesis with the two primary financial statements. This lesson explains parenthesis in balance sheet accounts.