Accounting

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To complete a petty cash book, keep a running tally of cash in the account, deposits, withdrawals and dates. The petty cash book is a summary of trivial expenses. It can take the form of a ledger sheet or a spreadsheet, such as a Microsoft Excel file. Typically a business maintains a petty cash account for minor expenses, such as meals, flowers, stamps and office supplies, according to Accounting Tools.

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  • What Are Sundry Expenses?

    Q: What Are Sundry Expenses?

    A: Sundry expenses are costs which may be relatively small or occur infrequently and are therefore not assigned to a specific ledger group. They are also known as miscellaneous expenses and are classified together as a group when they are presented in an accounting statement.
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  • What Is a Goods Received Note?

    Q: What Is a Goods Received Note?

    A: A goods received note is a receipt given to the supplier to confirm delivery or acceptance of goods by the customer. After the supplier receives this note, a payment invoice is sent to the customer.
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  • What Is a Sales Analysis Report?

    Q: What Is a Sales Analysis Report?

    A: According to the Houston Chronicle, a sales analysis report is a report that shows the trends that occur in a company's sales volume over time. It shows whether or not a company's sales are increasing or decreasing.
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  • What Goes Into a Payment Agreement Letter?

    Q: What Goes Into a Payment Agreement Letter?

    A: According to Reference.com, a legal payment agreement letter must contain the date of the transaction as well as the details of the repayment agreement and any penalties incurred if the borrower defaults on the agreement. Both the payee and borrower must sign the letter, thereby creating a legally binding document.
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  • Why Is Financial Reporting Important?

    Q: Why Is Financial Reporting Important?

    A: Financial reporting is important because it helps to ensure that companies and organizations comply with relevant regulations and, if it is a public company, shows investors the current financial health of a company. Investors use need this data to make investment decisions, voice concerns and vote on issues at shareholder meetings.
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  • How Is Direct Labor Cost Calculated?

    Q: How Is Direct Labor Cost Calculated?

    A: The simplest method for calculating direct labor cost is represented by multiplying the total hours worked times the wage rate for the period of time in question. The equation looks like this: direct labor cost equals total labor hours times labor rate.
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  • What Is the Abbreviation of the Word "accounting?"

    Q: What Is the Abbreviation of the Word "accounting?"

    A: According to Purdue University, the abbreviation for the word "accounting" is "ACCT." Sometimes all capital letters are used, but punctuation is always included. The accounting field uses several abbreviations for terms common to the profession.
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  • What Is the Ordinary Annuity Formula?

    Q: What Is the Ordinary Annuity Formula?

    A: The ordinary annuity formula appears as "P = r (PV) / 1 - (1+R) - n." The formula is used to calculate the periodic payment against an annuity when the rate and payments remain the same, with the first payment exactly one period away.
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  • Is Accounting an Art or a Science?

    Q: Is Accounting an Art or a Science?

    A: Accounting can be classified as both an art and a science. An accounting degree can be awarded as a Bachelor of Arts or a Bachelor of Science degree. Opinions on the classification may vary, but the very nature of accounting classifies it as both.
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  • Is Revenue the Same As Sales?

    Q: Is Revenue the Same As Sales?

    A: According to About.com, sales can account for a part or the whole of a company's revenue. Revenue is the amount of money that a company earns from its primary activities. If a company's primary activity is sales, such as a retail corporation, then revenue is the same as sales. If a company has different revenue streams, such as sales and rental income, then sales accounts for a portion of revenue.
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  • What Are Some Advantages and Disadvantages of Trade Credit?

    Q: What Are Some Advantages and Disadvantages of Trade Credit?

    A: The greatest advantages of trade credit to businesses include the availability of zero percent financing and potential discounts on needed goods, while the biggest disadvantage is the risk of late payment fees. Trade credit is an arrangement between a supplier and a business to receive goods or services while delaying cash payment until a later date.
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  • What Is a Capital Contribution in Accounting?

    Q: What Is a Capital Contribution in Accounting?

    A: About.com explains that a capital contribution in accounting is a segment of a company's recorded equity. The amount may be contributed using cash, equipment or other fixed assets. A common way for an owner to contribute capital to a company is to buy stocks.
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  • What Is a Trade Discount?

    Q: What Is a Trade Discount?

    A: According to the Accounting Tools website, trade discounts are provided to retailers by wholesalers for goods. The retailer can then charge the full manufacturer suggested retail price for the goods, using the discounted amount as profit.
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  • Why Is Finance Important to a Business?

    Q: Why Is Finance Important to a Business?

    A: Finance helps businesses achieve their goals by providing the funding they need to achieve them. Without funding, businesses cannot be successful.
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  • What Is an Invoice Used For?

    Q: What Is an Invoice Used For?

    A: An invoice is a document sent by a business to a client denoting an obligation to pay for goods or services. One primary purpose is to communicate the requirement to pay for the goods. The other is to document the transaction as an accounts receivable in its accounting system until the bill is paid.
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  • How Do I Complete a Petty Cash Book?

    Q: How Do I Complete a Petty Cash Book?

    A: To complete a petty cash book, keep a running tally of cash in the account, deposits, withdrawals and dates. The petty cash book is a summary of trivial expenses. It can take the form of a ledger sheet or a spreadsheet, such as a Microsoft Excel file. Typically a business maintains a petty cash account for minor expenses, such as meals, flowers, stamps and office supplies, according to Accounting Tools.
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  • What Is the Definition of "costing"?

    Q: What Is the Definition of "costing"?

    A: In accounting terms, costing refers to a system of calculating the amount of money it takes to produce goods or operate a business. Generally, costs include variables like cost of labor, cost of materials, cost of distribution and selling, taxes and administrative costs.
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  • What Are Public Funds?

    Q: What Are Public Funds?

    A: According to the Community Tool Box, public funds are funds that come from the public treasury. It is revenue generated from tax payments, and it is used to fund things that benefit the public, including health, human service, environmental development, community development and other public service programs.
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  • How Long Is the CPA Exam?

    Q: How Long Is the CPA Exam?

    A: The CPA exam lasts a total of 14 hours. It has four different sections, with two sections lasting four hours and two sections lasting three hours.
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  • What Is the Full Disclosure Principle in Accounting?

    Q: What Is the Full Disclosure Principle in Accounting?

    A: The full disclosure principle states that financial records should include all of the information necessary for readers to understand those records. This is a largely subjective principle, but full disclosure doesn't mean that records should include irrelevant information.
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  • What Are the Benefits of Using an Accrual-Basis Income Statement?

    Q: What Are the Benefits of Using an Accrual-Basis Income Statement?

    A: An income statement that uses accrual-basis accounting methods recognizes losses more quickly, avoiding the distortion that sometimes occurs with cash-basis accounting, delaying the recognition of losses for several years. For some businesses, this method provides a more accurate picture of profitability.
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