Accounting articles

Real, Personal and Nominal

Real, Personal and NominalIn a nutshell, nominal accounts are any revenue and expense accounts that a company has. At the end of each accounting period, nominal account balances are zeroed out so that these accounts can begin the next accounting peri... Read more

Business Startup Costs: It’s in the Details

Business Startup Costs: It’s in the DetailsFor a company to record advertising expenses as an asset, it must have reason to believe those specific expenses are tied to specific future sales. Then, as those sales occur, those advertising expenses are... Read more

What is a Variable Cost Per Unit?

What is a Variable Cost Per Unit?Normal Costing vs. Actual CostingManagers can use these formulas to calculate the total production costs. For instance, managers first need to find out how many hours it took the company to produce the product and how... Read more

Activity-Based Management

Activity-Based ManagementIn traditional product costing system, costs are, first, traced not to activities but to an organisational unit, such as department or plant and then to products. ABC, as compared to traditional cost system is based on one fu... Read more

Financial Statements

Financial StatementsDue to fair value treatment for “available for sale” securities, Unrealized gains or losses are included in the balance sheet on the asset side, however, such gains do not impact the net income of the Company. The Unrealized gains... Read more

Accumulated depreciation

Accumulated depreciationNet book value is the cost of an asset subtracted by its accumulated depreciation. For example, a company purchased a piece of printing equipment for $100,000 and the accumulated depreciation is $35,000, then the net book valu... Read more