Month: December 2020

The difference between the inventory value under LIFO and what it would be under FIFO is known as the LIFO reserve. This figure is often disclosed in financial statements to provide additional context to investors and analysts….

Because of this, horizontal analysis is important to investors and analysts. By conducting a horizontal analysis, you can tell what’s been driving an organization’s financial performance over the years and spot trends and growth patterns, line item…

Since cash was paid out, the asset account Cash is credited and another account needs to be debited. Because the rent payment will be used up in the current period (the month of June) it is considered…

They also leverage advanced software to keep their work efficient, transparent, and easily accessible for the client. Plus, they have built-in support for accounting software like QuickBooks Online, Bill.com, NetSuite, Expensify, and others, so they can seamlessly…

Finally, even among those who don’t do either, there’s still room for variation due to overhead costs like office space or equipment rental fees, which vary from region to region. For example, when you sign up with…

In the article about income statements under marginal cost, we discussed that marginal costs give a higher net profit figure as compared to absorption costing. Here, we are going to discuss the income statement under absorption costing…

Let’s say, for example, you have a retail business that sells t-shirts called BigT. The following are business transactions and how cash receipt journal entry they would be posted into the cash receipts journal. Journals are the foundation…