Accounting

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.

See Full Answer
Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • What is owner's capital?

    Q: What is owner's capital?

    A: In business, owner's capital, or owner's equity, refers to money that owners have invested into the business. In some instances, individuals prefer to finance activities through capital, rather than loans, to avoid facing any financial interest charges.When activities are financed through capital in a business, the profits must be paid to the owners.
    See Full Answer
    Filed Under:
  • What is the definition of "revenue allocation"?

    Q: What is the definition of "revenue allocation"?

    A: Revenue allocation is the distribution or division of total income, or revenue, in a business, corporate or government structure. It involves a complex process that entails how and where to allocate revenues in order to ensure the viability of departments and maintain the operating structure of the organization.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • How do you define accounting ethics?

    Q: How do you define accounting ethics?

    A: Accounting ethics refers to the standards of right and wrong conduct that apply to the accounting profession. Various accounting organizations maintain professional codes of conduct to assist accountants with upholding ethical behavior.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • What is the difference between accounting and bookkeeping?

    Q: What is the difference between accounting and bookkeeping?

    A: Bookkeeping involves recording basic accounting transactions such as recording invoices from suppliers, paying suppliers, processing payroll and recording cash received from customers. Bookkeeping is a subset of accounting. Accounting is usually more involved and includes activities such as creating financial statements, creating budgets and compiling tax returns.
    See Full Answer
    Filed Under:
  • What does retro pay mean?

    Q: What does retro pay mean?

    A: Retro pay are wages due to an employee for work already performed or services already rendered, usually in association with a pay raise that requires some sort of payroll action before taking effect.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • What is an imprest account?

    Q: What is an imprest account?

    A: An imprest account is one that holds a fixed amount of money and is replenished after a certain period of time. A good example of an imprest account is a petty cash system that may be replenished on a daily, weekly or monthly basis.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under: