Accounting articles

GAAP: Generally Accepted Accounting Principles

GAAP: Generally Accepted Accounting PrinciplesWhen a company pays a vendor, it will reduce Accounts Payable with a debit amount. As a result, the normal credit balance in Accounts Payable is the amount of vendor invoices that have been recorded but h... Read more

Accounting System Explained In Simple Words

Accounting System Explained In Simple WordsWhen John (company contact) told me a position for an experienced tax accountant had opened up I couldn't pass up the opportunity. I believe I can help you solve many of tax issues you're currently facing an... Read more

Accounting Theory

Accounting TheoryWhen and Why Were GAAP First Established?The APB listed 31 separate opinions during its existence from 1962 to 1973. The board was created by the American Institute of Certified Public Accountants (AICPA), and was replaced by Financi... Read more

CEO Salary

CEO SalaryThe median early career pay (0-5 years) was $96,000 (figures rounded to the nearest thousand) and mid-career pay (10 or more years) $149,000. The gender distribution in PayScale’s sample was 71 percent men and 29 percent women. A CEO typica... Read more

Mother of Simplified Accounting

Mother of Simplified AccountingDebits increase the balance of dividends, expenses, assets and losses. Credits increase the balance of gains, income, revenues, liabilities, and shareholder equity. The simplest most effective way to understand Debits a... Read more

Receivables Turnover Ratio – Definition

Receivables Turnover Ratio – DefinitionWhat Is Accounts Receivable?Thus, when the customer makes a deposit, the bank credits the account (increases the bank's liability). At the same time, the bank adds the money to its own cash holdings account.How... Read more

Accounts Payable Aging Schedule

Accounts Payable Aging ScheduleIf you have invoices that have not been posted to the general ledger, deduct them from the aging report’s total. Then compare the modified total on your aging report with your general ledger balance for accounts payable... Read more