Tag: accounting

Generally Accepted Accounting Principles (GAAP)

See Also: Accrual Based Accounting Modified Accelerated Cost Recovery System MACRS 10 Q Asset History of Accounting Full Disclosure Principle Generally Accepted Accounting Principles (GAAP) Definition Generally Accepted Accounting Principles (GAAP) are a set of standards, guidelines, and regulations for financial accounting. Companies should follow GAAP rules when preparing financial statements. GAAP rules were established

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Variable vs Fixed Costs

See Also: Absorption vs Variable Costing Semi Variable Costs Sunk Costs Marginal Costs Average Cost Variable vs Fixed Costs Definition In accounting, a distinction is often made between the variable vs fixed costs definition. Variable costs change with activity or production volume. In comparison, fixed costs remain constant regardless of activity or production volume. All Costs In

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Time Saving Tip for Filing Vendor Invoices

See Also: Accounts Payable Turnover Accounts Receivable Accounts Receivable Turnover Chart of Accounts (COA) Problems in Chart of Accounts Design Current Practice How do you file your paid vendor invoices? Alphabetically? Who taught you to do it that way? Have you ever wondered why? How often do you go back and research a paid accounts

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Unearned Revenue

See Also: Accounts Payable Unearned Revenue Definition Unearned revenues are titles for certain revenues that have not been earned. You can also call unearned revenues deferred revenues. Though it seems comically intuitive, unearned revenue is very important and often observed in the real world. In accounting, they are represented as liabilities on the balance sheet. This is

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Translation Exposure

See Also: Transaction Exposure Currency Swap Exchange Traded Funds Hedge Funds Fixed Income Securities Translation Exposure Translation exposure is a type of foreign exchange risk faced by multinational corporations that have subsidiaries operating in another country. It is the risk that foreign exchange rate fluctuations will adversely affect the translation of the subsidiary’s assets and

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Subsequent Events

Subsequent Events Definition The definition of a subsequent events are generally defined as events that occurs after the year end period but before the financial statements have been issued. A subsequent event falls underneath the disclosure principle and can be confusing to many accountants that encounter them. However, the codification provides guidance under ASC 855

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Service Department

See Also: Administration Expenses Outsource Definition Advantages of PEO Services for the Business Owner Sunk Costs Joint Costs Service Department Definition Many companies require support activities as well as core activities to produce their goods and/or services. Support services, or a service department, do not contribute directly to the production of goods or the providing

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Separation Of Duties

Separation of Duties Definition Some circles refer to separation of duties as segregation of duties. It refers to a concept that leads to greater internal control within a company. The accounting separation of duties definition is a theory that the job of an employee should provide a reasonable evaluation for the job of another employee. In

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Statement of Financial Accounting Standards (SFAS)

The Statement of Financial Accounting Standards (SFAS) describes standards for professional accounting practices and procedures in the United States. Furthermore, it is published by the Financial Accounting Standards Board (FASB). The document lists standard rules and regulations – including many from GAAP – for preparing financial statements. In addition, the FASB intended for these standards to

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Standard Cost

Standard Costs Definition Standard cost accounting is a goal or budget costs that is associated with variable costs. They are also used to measure the cost that management believes that it will incur over a period. Standard Costing Explained In short, standard costing takes the direct labor, direct materials, and manufacturing overhead, and estimates the

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Sarbanes Oxley Act of 2002

See Also: Securities Act of 1933 Securities Exchange Act of 1934 Audit Committee Auditor American Institute of Certified Public Accountants – AICPA Sarbanes Oxley Act of 2002 Definition The Sarbanes Oxley Act of 2002 or SOX for short is further regulation of the secondary market by requiring further internal controls within companies and extensive audit

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History of Accounting

See Also: History of Factoring Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards (IFRS) Financial Accounting Standards Board (FASB) Certified Public Accountant (CPA) History of Accounting Below is the history of accounting timeline is a general overview of larger events which have all contributed to modern day accounting. It encompasses primitive accounting, with the

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