Bookkeeping – Internal Accounts (Lesson 79)
Internal accounts are used by management to clarify information, account for interdepartmental activities and address temporary bookkeeping issues.
Month: November 2017
Bookkeeping – Temporary Accounts (Lesson 78)
Temporary accounts are financial and process control tools used by management to achieve financial goals. They are composed of internal, regulator and restrictive accounts. They are opened at the beginning of an accounting period and closed prior to the end of an accounting cycle.
Bookkeeping – Cost Accounting (Lesson 77)
The science of calculating the actual costs of manufacturing is known as cost accounting, a.k.a managerial accounting. Unlike traditional accounting which records economic transactions after they occur, cost accounting identifies all underlying costs associated with the production of a single unit.
Cash Flow From Operations – Understanding Cash Flow (Part II)
To understand the cash situation, the cash flows statement is an additional report included in financial statements to basically convert the accrual basis balance sheet and income statement into a cash basis report. This way, management gets the best attributes of both accrual and cash basis accounting.
Bookkeeping – Retail Accounting with Item Tracking (Lesson 76)
The retail business is interested in what sells well, not how well something performs against an estimate (project accounting). The retail business uses a different type of accounting to analyze financial performance.