Introduction: Unearned revenue and prepaid expense are the same things but in the context of different people. Unearned revenue is the money received in advance for the services or products that are still to be delivered to the customer at a future date. This is a liability amount which is an obligation over the company. […]
Unearned Revenues Vs. Prepaid Expenses – Key Different Explained Read More »
Introduction: Unearned revenue is the cash proceeds received by a company or individual for a service or product that the company or individual still has to deliver to the customer. It is an advance payment from a customer that is expecting the delivery of services or products at a later date. The company cannot recognize
IS UNEARNED REVENUE AN ASSET OR LIABILITY? Read More »
Accounts payable(ap) is never a negative number since accounting doesn’t utilize negative numbers. Accounts payable is a liability, a guarantee that you will take care of that account. At the point when you pay that sum with cash, your cash account goes down for that sum. Numerous business proprietors utilizing QuickBooks don’t comprehend why negative
WHY DO ACCOUNT PAYABLE(AP) SHOW A NEGATIVE BALANCE? Read More »
Accounts payables are the credit balances the company owes to vendors or other companies for the supply of goods or services. Accounts payable are of a credit nature in accounting terminologies which will increase when the company buys more services or inventory. This will create a credit entry in the books of the company hence
Account Payable: Why Does It Increase or Decrease? Read More »
Definition: When a business does an ordinary course of operations, it must purchase its primary inventory from external vendors to survive. When the inventory is delivered to the company, vendors send an invoice to the purchasing party to pay for the proceeds of the inventory. When its relevant department receives the invoice, it must record
What is Trade Payable? (Definition, Explanation, Example, and Journal Entry) Read More »
Definition Materiality can be regarded as a concept in auditing and accounting, which relates to the importance and significance of an amount, transaction or respective discrepancy that might occur in the financial statements. It stands to be one of the most important objectives of the audit arrangements since it is the auditors’ responsibility to base
What is Audit Materiality? Definition, Characteristics, Types And More Read More »
Introduction: Accounts payables are the balances owed by the company to its vendors when they supply goods or services to the company. The company increases its accounts payable as the vendor supplies the goods to the company on credit. Accounts payables are credited while goods or supplies are debited. Accounts payables are of a credit
6 Roles of Accounts Payable Manager or Department You Should Know Read More »
Definition A Special Audit can be defined as a tightly defined type of audit that is conducted in order to probe into a specific area of the organization’s activities. As a matter of fact, it can be seen that this type of audit is mainly initiated by a third party, like a government agency or
What is a Special Audit? Scope and Why is it required? Read More »
Overview: A Cash or Sales discount is the reduction in the price of a product or service offered to a customer by the seller to pay the due amount within a specified time period. This is one of the best ways most of the sellers could improve the cash flow for their operations. The
Accounting for Sales Discount: Overview, Example, & Journal Entries Read More »
What Is Sales Return? Sales return is the return of products or commodities by customers to the seller due to many reasons, but usually within some agreed time period and due to the condition of the product and customer satisfaction. This sales return is accounted for differently from the seller and buyer’s perspectives. There may
Accounting for Sales Return: Journal Entries and Example Read More »