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.Continue Reading
An imprest account limits what can be spent within a fixed time period. For example, if the weekly petty cash limit is $100, it is not possible to spend more. The account is replenished every week depending on how much has been used, always topping it up to $100.
It is also easier to account for spending with an imprest account as the system requires documentation with receipts and invoices for each withdrawal. Since the amount of money is a known quantity, each period's spend is easy to calculate.Learn more about Accounting
Preparing a profit and loss statement for a business entails calculating the net profit by knowing information, such as revenue, net sales, cost of goods, gross margin and operating expense for a certain period of time, as noted by the Edward Lowe Foundation. To prepare a P & L statement, which is also called an income statement, it is important to know what different terms mean and any equations needed to determine the net profit.Full Answer >
A profit and loss statement, or P&L, shows income and expenses over a period of time, such as a month, quarter or year. Categories of income and expense include those normally used by the business.Full Answer >
An income statement represents a period of time (the length of this period may vary), whereas a balance sheet reflects finances at one particular point in time. Whereas the income statement lists all of a business’s income and expenses over a period of time, the balance sheet presents a snapshot of the company’s finances.Full Answer >
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.Full Answer >