Cash Receipt Journal – Definition, Explanation, Format, and More

General Journal

Definition A cash receipts journal is a special journal within the general journal that is used specifically to record all the cash receipts. It has a total record of all the cash collections during an accounting period. The credit sales which the busy ones make are...

Accrued Expense Journal Entry – Example, Definition, Recording, and Explained

General Journal

Introduction The term “accrued” means “accumulate” or “increase”. As such accrued liabilities mean that the unpaid bills issued to the company are increasing. When the expenses are made by customers, they don’t make cash payments every time. Despite payments being not...

Deferred Revenue Journal Entry: Example, Definition, Recording, and Explained

General Journal

Do customers pay for the goods or services purchased before delivering them? The answer is a big YES. If so, the need for knowing about deferred revenue arises. In common parlance, it is called unearned revenue. The revenue becomes unearned when the company receives...

Amortization Expense Journal Entry – Example, Definition, and Recording

Amortized cost, General Journal

Assets are resources owned or controlled by a company or business that bring future economic inflows. There are various types of assets that companies use in daily operations to generate revenues. Among these are fixed assets, which they use in the long run to...

What is Journaling Entry Testing? Why Is It Important?

Audit, Audit Procedures, General Journal

Journaling entry testing: The need for journal entry testing arises when the auditor needs to test the nature, timing, and extent of journal entries. It is done to recognize the risk of material misstatement due to fraud while recording financial transactions. The...

Journal Entry Testing and Why is it Important?

General Journal

Introduction In accounting, journal entries are, to a big extent, one of the most significant abilities to ace. Without legitimate journal entries, organizations’ financial reports would be wrong and a total wreck. If you do not want to risk your accounting...