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 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 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
Basic Accounting: The Accounting Cycle ExplainedHow the Accounting Cycle WorksWhat is the accounting cycle?The accounting cycle is the holistic process of recording and processing all financial transactions of a company, from when the transaction occ... Read more
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
Real Accounts vs. Nominal Accounts: Definition, Differences & ExamplesAsset AccountsFor example, a company's balance sheet reports assets of $100,000 and Accounts Payable of $40,000 and owner's equity of $60,000. The source of the company's asset... Read more
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 – 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 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
Debits and credits — AccountingToolsReal AccountsWhat account means?An account can be the record in a system of accounting in which a business records debits and credits as evidence of accounting transactions. Under this meaning, an account is anoth... Read more
