Generally speaking, it’s considered best practice to carry as little WIP Inventory as possible. Having too much WIP inventory on-hand can be an indication of bottlenecks in your manufacturing or procurement process.The term work-in-progress is a prod... Read more
You can take the three parts in any order and, if you pass part of the exam, you can carry over passing scores up to two years from the date you took the exam. Enrolled agents also had to learn about taxpayer advocacy. This additional skill involved... Read more
In order to work as an enrolled agent, candidates must receive the proper certification from the Internal Revenue Service. Generally speaking, interested candidates should have a background in public accounting. It’s also important to have tax prepar... Read more
Suspense accounts are routinely cleared out once the nature of the suspended amounts are resolved, and are subsequently shuffled to their correctly designated accounts. In reality, under a double-entry bookkeeping method, every kind of error is bound... Read more
Holding off on depositing receivables until you have all the facts in hand can result in inaccurate financial statements, especially if it takes a long time to reconcile and if the unidentified payment isn’t an isolated incident . Although it’s criti... Read more
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
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
Work in progress , also called work in process, is inventory that has begun the manufacturing process and is no longer included in raw materials inventory, but is not yet a completed product. On a balance sheet, work in progress is considered to be a... Read more
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
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
