See Also: Accounting Income vs Economic Income Capital Gains Proforma Earnings Operating Income Net Income Asset Market Value vs Asset Book Value Realized and Unrealized Gains and Losses Explanation In accounting, there is a difference between realized and unrealized gains and losses. Realized income or losses refer to profits or losses from completed transactions. Unrealized
Progress Billing for a General Contractor Definition A construction project typically involves many different trades in order to reach completion. Therefore, it can be just as daunting a task to submit for payment to a client along the way. The Owner of a construction project relies on the project architect, lender and sometimes a third
Responsibility Center Definition In accounting, a responsibility center refers to an organizational subunit in a corporation. For instance, a large corporation may consist of numerous smaller business groups or divisions, some or all of these organizational subunits could be set up as responsibility centers. The manager of a responsibility center is responsible for the activities
See Also: Accounting Principles Percentage of Completion Method Completed Contract Method Cost Recovery Method Installment Method Point of Sale (POS) Method Definition The Point of Sale (POS) Method also known as the Revenue Method or Sales Method is one of the many methods under the Revenue Principle of Accounting. This method records the revenue at
See also: Standard Chart of Accounts Chart of Accounts (COA) Complex COA Number for SGA Expenses Example Chart of Accounts for Selling General and Administrative Time Saving Tip for Filing Vendor Invoices Problems in Chart of Accounts Design Too Many General Ledger Accounts Often when using QuickBooks or Peachtree accounting software the number of general
In accounting, Prepaid Income Tax is defined as an asset listed on the balance sheet that represents taxes that have been already paid despite not yet having been incurred. It is also called a deferred income tax asset. Prepaid Income Tax Explanation Prepaid income tax is a form of prepaid expense. The most common reason
See Also: Perpetual Inventory System Just in Time Inventory System Economic Order Quantity (EOQ) Days Inventory Outstanding Analysis How to manage inventory Periodic Inventory System Definition A periodic inventory system or the periodic inventory method is an accounting method in which you determine the amount of inventory at the end of each accounting period or
See Also: Straight Line Depreciation Double Declining Depreciation Method Accelerated Method of Depreciation Financial Accounting Standards Board (FASB) Generally Accepted Accounting Principles Modified Accelerated Cost Recovery System Definition The modified accelerated cost recovery system (MACRS) method of depreciation assigns specific types of assets to categories with distinct accelerated depreciation schedules. Furthermore, MACRS is required by
See Also: Operating Income Example EBITDA Definition Net Income Free Cash Flow Operating Profit Margin Ratio Time Value of Money (TVM) What is operating income? Earnings before interest and tax, also know as operating income (EBIT), is defined as a measure of a company’s profit from ordinary operations, excluding interest and tax. EBIT is also
See Also: Notes Payable Treasury Notes (t notes) Accounts Receivable How to collect accounts receivable Balance Sheet Notes Receivable Definition The notes receivable is an account on the balance sheet usually under the current assets section if its life is less than a year. Specifically, a note receivable is a written promise to receive money
See Also: Activity Based Management (ABM) Warning Signs Of A Company In Trouble Budgeting 101: Creating Successful Budgets Planning Your Exit Strategy Outsource Definition Management Definition What is Management? The management definition is a single or group of individuals who challenges and oversees a person or collective group of people in efforts to accomplish desired
See Also: Statement of Financial Accounting Standards (SFAS) Management Audit Goodwill Accounting Term Cost Accounting Accounting Principles Management Accounting Definition The management accounting definition is accounting with the specific purposes of informing managers. Management vs financial accounting: financial accounting is mainly for the purpose of informing outside parties – shareholders, lenders, creditors, and government. Ultimately, company controllers
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