In accounting, the mnemonic “DEALER” is used to remember how debits and credits affect different types of accounts: D – Dividends (or Draws for sole proprietorships and partnerships) E – Expenses A – Assets These accounts normally have a debit balance. L – Liabilities E – Equity R – Revenues These accounts normally have a credit balance. Using this …
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Accounting is a vital department in any company. Through it, you can monitor and measure the financial performance of your business. However, the entire process can be time-consuming and tedious. For this reason, companies are always looking for ideas and necessary tools to streamline the process. The good news is that various modern tech tools …
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Definition: Financial Aid can be defined as the monetary compensation of leverage that is given to students, or professionals in the cases where they are eligible, but are unable to afford for the particular course themselves. Financial Aid is regarded as money that helps pay individuals pay for their college, or their career school. It …
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Definition: Accounting profit is the net income of a business calculated after deducting all its explicit costs and expenses from its revenues. The calculation of accounting profit follows the standards set in the Generally Accepted Accounting Principles (GAAP). Businesses following GAAP are required by it to report their accounting profit in their financial statements. However, …
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What Is Current Liabilities? And How To Account for It? Current liabilities refer to debts or obligations a company is expected to pay off within a year or less. These short-term liabilities must be settled shortly, typically within a year or less. Examples of current liabilities include accounts payable, wages payable, taxes payable, and short-term …
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Definition: Accounting policies are the internal policies prepared and set by the entity to process, measure, recognize records, as well as disclose the specific items or transactions in its financial statements of an entity. Accounting policies might be different from one company to another; however, those policies are tailored to meet the specific International Accounting Standard …
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Have you heard of the Ponzi Scheme Fraud? Or do your ears ever get to hear Enron Scandal, Tyco International Scandal, or Bernie Madoff Fraud? The world has known business, money, finance, investment, and profit for centuries. It also knows the word fraud, embezzlement, financial scandal, economic losses, financial disputes, etc., since then. But all …
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Why? The forensic accountant is now becoming so popular job in some countries as it is one of the high paid jobs in the accountancy field. As we normally see, a lot of people who work in this job hold not only professional accounting qualifications with some good knowledge of ingestion skills, but also special investigation skills …
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Definition: Direct costs are those expenses or costs that can be directly associated or contributed to a product, service, department, or cost object that the company could totally verify or trace. The new costing techniques introduced by cost accounting divide total product costs into two categories or types. One is called direct costs, and the …
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Definition: Indirect costs are those expenses that are incurred in common for different projects, products, or business activities and cannot be easily divided for individual projects, products, or activities. We also could say all the costs that could not be allocated to direct costs are indirect costs. Indirect costs are also recorded in the company’s …
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