Current Assets Archives - Page 2 of 4

Accounting for Goods in Transit (Explanation, Examples, Treatment, and Journal Entries)

What Is Goods In Transit? Goods in Transit indicates the stock that is bought from the purchaser and delivered through a dealer, nonetheless, the merchandise is in transit but still needs to arrive at the proposed buyer. Towards the ending of an accounting time frame, such stock items permit exceptional consideration for accounting such merchandise …

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Is cash debit or credit? – Explanation with journal entries

Current Assets

Explanation: Cash is the company’s current assets holding for small expenses in the office or for a certain large amount of cash transactions. For example, the company holds petty cash for making payments on small office expenses. Sometimes, the company might keep a large amount of cash for making payments to certain suppliers that accept …

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How to Safeguard Company Assets?

Current Assets, Financial Statements

Your success in business does not just depend only on your ability to make sales profits. You have to also learn how to properly manage and safeguard your company assets; they are what makes the profits for you. Company assets are the valuable properties that your company owns. They include tangible physical business properties like …

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How to Safeguard A Company’s Cash?

Current Assets, Financial Statements

There are a lot of risks associated with running a business and managing its assets. Learning how to safeguard your company’s cash is one of the viable ways to minimize those risks. Cash is a very important asset for every business. It provides a quick and reliable means of making and receiving payments without much …

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What Are Other Current Assets? Formula and Example

Current Assets

Other current assets are a type of categorization of assets. These are residual current assets that have not been specified by the company or regulations or do not meet the criteria of being classified separately. They are referred to as they are uncommon and insignificant, like the current assets like cash, accounts receivables, and prepaid …

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What is inventory profit? (Types, Meaning, Example, and Calculation)

Inventories

Businesses that deal with physical products will have inventory at some point during their operations if not always. Inventory is a term used to describe all tangible materials that businesses use to manufacture products for sale. For businesses, it is one of the most important assets as it is the main reason for the revenues …

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How to organize inventory for small businesses? 5 Importance Tips

Accounting Documents, Inventories

Inventory management Inventory management is the efficient mechanism of ordering, storing, and use of the company’s inventory. The process includes the management of raw materials, components as well as finished goods. Further, the management of warehoused products and work in process items also fall under efficient inventory management. Inventory management helps to know when to …

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How Do Inventories Affect the Costs of Goods Sold?

Cost of goods sold, Inventories

Inventory is a current asset appearing in the balance sheet under the head current asset as well as a major item of the income statement. Inventories are goods held for sale in the ordinary course of business that can help the management of the company to control and improve the business profitability and operate efficiently. …

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How are inventories reported on financial statements?

Financial Statements, Inventories

Financial Statements: According to the international accounting standards and generally accepted accounting principles, every entity is supposed to prepare annual financial statements including the following: Income statement Balance sheet Statement of changes in equity Statement of cash flow These statements or reports are made in order to provide a clear understanding of how the business …

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Periodic Inventory System Vs Perpetual Inventory System

Inventories

Periodic Inventory System Vs Perpetual Inventory System is a distinctive technique used to follow the number of goods on hand. The more refined of the two is the perpetual system, however, it requires substantially more record-keeping to keep up. The periodic system depends upon a physical count of the stock to decide the ending inventory, …

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