Accounting articles

A Small Business Guide To Flexible Budgets

The original budget assumed 17,000 Pickup Trucks would be sold at $15 each. To prepare the flexible budget, the units will change to 17,500 trucks, and the actual sales level and the selling price will remain the same. Given that the variance is unfa... Read more

Post Closing Trial Balance Definition

The fourth entry requires Dividends to close to the Retained Earnings account. Remember from your past studies that dividends are not expenses, such as salaries paid to your employees or staff. Instead, declaring and paying dividends is a method util... Read more

Trial Balance Accounting

Common ledger accounts include inventory, utilities, loans, rent and wages. A trial balance is a report that lists the ending balance of all of your general ledger accounts. Used to ensure that debits and credits match, a trial balance serves as a wa... Read more

What Goes In The Post Closing Trial Balance?

The completion of the post-closing trial balance means that all closing entries are posted, the old accounting period can close and the new accounting period can begin. The main difference between post-closing trial balance and adjusted trial balance... Read more

How To Prepare A Trial Balance

The first step in finding an error is to add the credit and debit columns again to check your math. If they still don't add up, then subtract the smaller column from the larger and look for the missing amount in the smaller column. To generate report... Read more

Quickbooks Online Review

With simple set-up, you can easily manage your customers, vendors, clients, inventory and finances. QuickBooks has both an online version and a desktop version, and there are pros and cons for each. The least expensive desktop version , is a one-time... Read more

Retained Earnings Formula Definition

On the other hand, though stock dividends do not lead to a cash outflow, the stock payment transfers part of the retained earnings to common stock. For instance, if a company pays one share as a dividend for each share held by the investors, the pric... Read more

What Is Comprehensive Income?

The second format of Statement of Comprehensive Income is the multiple-step of the income statement. In the expenses section, the cost of goods sold, operating expenses, and loss of the exchange rate are recorded in the same sections. This governs th... Read more