Category: Bookkeeping

This delay happens for various reasons—such as verifying the account information, checking for sufficient funds, or ensuring there are no issues with the check itself (like a torn corner). During this time, even though the money has been taken from your account, it hasn’t yet reached the recipient’s account. In other words, the transaction is…

The answer to how to record the journal entry for petty cash is not straightforward. As stated above, the petty cash account may include different types of transactions. At the end of each accounting period, companies must close the balance on the petty cash account. They report this balance under the current asset section on…

Monetary Unit Assumption Definition, Explanation and Examples The shareholders would primarily be interested in total monthly sales provided they meet the targets. At the same time, the money measurement concept will be unable to provide the variance in details for operations and sales employees. In that scenario, both the management and shareholders would want to…

Yes, for all U.S. federal grants, a Unique Entity ID (UEI) obtained from SAM.gov is a mandatory requirement for eligibility. This number has officially replaced the DUNS number as grant eligibility the primary identifier for organizations doing business with the federal government. While criteria are tailored to specific applicants, a set of universal requirements appears…

Borrowed from French contingent, from Latin contingens. Borrowed from French contingent, from Latin contingens. Borrowed from French contingent, from Latin contingens. Borrowed from French contingent, from Latin contingens. Borrowed from French contingent, from Latin contingens.

Equipment is a noncurrent or long-term asset account which reports the cost of the equipment. Equipment will be depreciated over its useful life by debiting the income statement account Depreciation Expense and crediting the balance sheet account Accumulated Depreciation (a contra asset account). Under the accrual basis of accounting, revenues are recorded at the time…

Residential construction services specialize in creating spaces for people to live in. Whether it’s a single-family home, a duplex, or a high-rise apartment building, residential construction services work to build comfortable, safe, and durable homes. House construction services revolve around the building of residential homes. From single-family houses to large apartment complexes, these services cover…

For nonprofits, audited financial statements demonstrate proper management of donor and grantmaker contributions. Regardless of the sector, audited financial statements play a vital role in fostering trust, enhancing financial management, and supporting how to request an audit of a nonprofit informed decision-making. Auditors will also review any operational issues such as processes and procedures, employee…

While Incoterms can apply to international trade and domestic shipments, UCC is primarily used for domestic shipments. The transportation department of a buyer might insist on FOB shipping point terms, so that it can take complete control over the delivery of goods once they leave a supplier’s shipping dock. The seller is contra asset account…

However, when the invoice is paid, it becomes a cash outflow, reducing the company’s available funds. Properly classifying liabilities and expenses is key to assessing your company’s short- and long-term financial health. They’re also essential to understanding its performance and ensuring accurate financial analysis. Here’s an example of how liabilities and expenses might impact a…