Accounting

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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  • 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 Typical Accounting Department Functions?

    Q: What Are Typical Accounting Department Functions?

    A: Accounting department duties vary from one firm to the next, but generally include tracking income and expenditures, attending to payrolls, reporting and setting financial controls. Accounting departments help to manage and monitor outgoing monetary expenses by making payments and lowering the price of bills to be paid. They regulate and watch income by tracking sales and processing incoming payments and ensure that all employees are paid according to salaries listed on the company payroll.
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  • What Is the Difference Between Capital and Revenue Expenditure?

    Q: What Is the Difference Between Capital and Revenue Expenditure?

    A: A capital expenditure includes all costs incurred on the acquisition of a fixed asset along with subsequent expenditures that increase the asset's earning capacity, while revenue expenditure only includes costs that are aimed at maintaining fixed assets and not enhancing earning capacity. The distinction between capital expenditure and revenue expenditure is important because only capital expenditures are included in the cost of a fixed asset.
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  • What Is Income From Continuing Operations?

    Q: What Is Income From Continuing Operations?

    A: Income from continuing operations is ongoing earnings from normal business activity. It is what a company can expect from future earnings, such as if a company plans to continue to produce shoelaces and buttons but no longer zippers, earnings from the zippers is not calculated as income from continuing operations.
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  • What Is the Main Objective for Any Business?

    Q: What Is the Main Objective for Any Business?

    A: Under traditional business theory, the main objective of any business is to make a profit for its owners. Only those business activities that result in the highest profit margin meet this basic objective.
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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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  • What Is the Difference Between Operating and Capital Budget?

    Q: What Is the Difference Between Operating and Capital Budget?

    A: Operating budgets pay for day-to-day expenses, while capital budgets pay for major capital, or investment, spending, writes Kevin Johnston in an article in the Houston Chronicle's Small Business section. Understanding the differences between these budgets is critical to effectively managing business finances.
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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 Strategic Management Accounting?

    Q: What Is Strategic Management Accounting?

    A: According to a Houston Chronicle article by Grant Houston, strategic management accounting is a form of business inquiry that combines the accounting criteria of an organization with external factors that influence the organization, such as industry trends in costing, pricing, market share and resources. The goal of strategic management accounting is to provide companies with a comprehensive means to analyze future business decisions. It is more complex than management accounting.
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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 Does "accretion" Mean in Accounting?

    Q: What Does "accretion" Mean in Accounting?

    A: In accounting, the word "accretion" refers to growth in value over time. Accretion typically refers to the increase of value of a bond over time.
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  • How Do You Write a Monthly Report?

    Q: How Do You Write a Monthly Report?

    A: Monthly reports are used by project managers and program directors to inform supervisors of the progress of projects. The reports are based on one calendar month and are usually turned in within a week after the month ends. A report typically consists of one or two pages of easily digestible information.
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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 a 13-Month Salary?

    Q: What Is a 13-Month Salary?

    A: A 13-month salary refers to a payment made to employees above their normal salary, usually equivalent to a month's salary. This type of payment is made as mandated by local law or as part of an employment contract.
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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 the Meaning of Gross Pay?

    Q: What Is the Meaning of Gross Pay?

    A: An employee’s gross pay is the money earned from working before taxes and other deductions. An employee’s gross pay includes the money they earn from commissions, overtime and tips.
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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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  • 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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  • 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 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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  • What Are Net Fixed Assets on a Balance Sheet?

    Q: What Are Net Fixed Assets on a Balance Sheet?

    A: According to Ohio State University, net fixed assets on a balance sheet are the book value of a company's long-term assets, such as property, vehicles or equipment. The net fixed asset value is calculated by taking the gross asset value, or purchase price, and subtracting the accumulated depreciation of value.
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