ARTICLES

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 grou...

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Operating leases are treated as rental expenses for the lessee, and refer to contracts that permit use, but not ownership, of an asset. Operating leases are accounted for through the recording of periodic payments on the...

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The primary drawback of using reversing entries is that if the accountant forgets to do it, revenues or expenses can end up being overstated, depending on the transaction. Benefits include a greater degree of accuracy, e...

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SIMILAR ARTICLES

People need accounting because it keeps a record of cashflow, produces financial reports and monitors business expenses of an organization, according to the Houston Chronicle. Accounting helps owners make vital decisions...

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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.

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Companies use adjustment entries to align expenses and revenues to the accounting period where they occurred. The process ensures that all income, expense, asset and liability accounts reflect their true values when repo...

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The prudence concept, also known as the conservatism principle, is an accounting principle that requires an accountant to record liabilities and expenses as soon as they occur, but revenues only when they are assured or ...

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