Introduction: Statement of cash flow is a compulsory part of a company’s financial report since 1987 and even pairs up with the balance sheet and income statement. As a financial statement, it encompasses the inflow and outflow of the sum of cash and cash equivalents. In order to measure the overall cash position of a […]
Is the Cost of Goods Sold Present in the Statement of Cash Flow? Read More »
Delivering a promise that you gave is probably what drives the successful bookkeeper the most. Either you are a bookkeeper which is employed by the company or you are a CPA that provides booking services. To deliver that promise, you might need to possess skills and expertise including accounting and financial reporting skills, communication skills,
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What is an audit procedure? Audit procedures also referred to as audit programs involve the procedures, methods, and strategies that auditors implement in order to achieve audit confirmation. It assists them to deduce if the audit objective was fulfilled according to the given data. Auditing is carried out in three steps: Step 1 – Recognize the statement claim being
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The Statement of Profit or Loss is one of the main financial statements that businesses prepare. It contains exclusive information that other financial statements do no show. The statement is a combination of the revenues of a business, and its expenses. One of these expenses and an important part of any Statement of Profit or
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The term Cost Of Sales (COS) generally refers to the costs a business bears on the revenues it generates. Businesses calculate their COS to comply with the matching concept of accounting, which requires them to match their costs with their revenues. This means that they have to calculate the cost of their products or services
Cost of service Vs. Cost of Goods Sold: What is The Different? Read More »
Overview: The statement of changes in equity is one of the four main financial statements prepared by the entity for the end of the specific accounting period along with other statements such as balance sheet, income statement, and statement of cash flow. This statement normally presents the entity’s capital, accumulated losses, or retained earnings, depending
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Brief introduction The cost of goods sold for any business entity in any sector is the main factor to evaluate the economic health of the organization. The difference between sales and cost of sales refers to the gross profit or gross loss, the greater the difference the greater will be the impact on the health
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Brief introduction Bakery businesses are usually operating in retail outlets. All the baked items and food prepared in the bakery is a product of this business, the preparation of the product requires direct material such as baking powder, baking soda, flour, sugar, milk, butter, salt, and other necessary items, direct labor which is directly involved
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Going Concern Concept There are many different concepts that companies must follow when it comes to accounting. One such concept is the Going Concern concept. The going concern concept of accounting requires companies to prepare their financial statements based on the assumption that they will stay in the company for the foreseeable future. Staying in
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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
What is inventory profit? (Types, Meaning, Example, and Calculation) Read More »