Tag: Balance Sheet
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Open Job Cost Status Report
The Open Job Cost Status Report identifies a project’s actual costs of construction, amounts borrowed or financed, and any customer payments made to date. The net result is the contractor’s net investment into the respective project.
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Bookkeeping – Closing the Books (Lesson 69)
The closing process is designed to finalize the financial information for that period of time. It involves correction of errors, posting omissions and confirming balances of accounts.
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Bookkeeping – Proper Balance Sheet Presentation (Lesson 20)
The balance sheet serves as an historical report. It identifies the accumulated change in value since inception.
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Bookkeeping – Debits and Credits with Parenthesis on the Balance Sheet (Lesson 13)
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.
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Bookkeeping – Debits and Credits in Equity Accounts (Lesson 10)
The equity section of the balance sheet identifies the approximate dollar value of net worth accrued to the owners/investors. Equity accounts can have both credit and debit balances.
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Bookkeeping – Financial Statement Relationships (Lesson 9)
The financial statement reports illustrate changes in the businesses’ financial condition over time.
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Leverage in Business
In the simple lever and fulcrum machine the force is magnified onto a load. The machine creates a mechanical advantage, a form of force amplification. In business the principle is exactly the same. Except here we are not moving a physical object but the objective is to amplify the profitability or financial gain by using some…
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Internal Controls – Fixed Assets
Internal control is a subset of the accounting system to aid in proper reporting of existing assets and liabilities. Internal controls over fixed assets alleviate two distinct risks. The primary risk is physical in nature and relates to the asset getting lost, stolen or damaged thereby affecting the value as reported on the financial statements. The second risk…
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Financial Statements for the Small Business
Financial statements serve the purpose of presenting economic activity and status related to a particular date and over a particular time frame. Accountants record monetary transactions and via financial reports present the information in an easy to understand format.
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Job Cost Reports – Balance Sheet Set
Construction accounting uses job cost reports to inform management of progress and existing issues with projects. There are several different sets of reports. The balance sheet set functions as an overall financial picture for the company.