Bookkeeping - Page 63 of 146 - Online Accounting

LIFO

Oct 12, 2020 Bookkeeping by Adam Hill

Now, it may seem counterintuitive for a company to underreport profits. However, by using LIFO, the cost of goods sold is reported at a higher amount, resulting in a lower profit and thus a lower tax. Since LIFO expenses the newest costs, there is ex...

Consolidation accounting

Oct 12, 2020 Bookkeeping by Adam Hill

SPV limited companies are usually set up by landlords moving away from a 'buy-to-let' business. The second truism states that all organizations don’t have the same moral standard (Crews 8). Enron’s risk manual supported the idea that reported earning...

Proof of funds

Oct 9, 2020 Bookkeeping by Adam Hill

Sales day book is the book of original entry that records credit sales. The source document is the duplicate of the invoice issued to the customer. The volume of daily sales normally demands that it is issued first to collate a period’s sale before b...

How to List Sources in a Research Paper

Oct 9, 2020 Bookkeeping by Adam Hill

If a customer's account is past due, a company can send a debit note to the customer to remind him of the oversight on the account. An example of an invoice is when a sale is made and the customer requests an itemized receipt. The invoice includes th...

Solvency vs Liquidity

Oct 9, 2020 Bookkeeping by Adam Hill

Although they both measure the ability of a company to pay off its obligations, solvency ratios focus more on the long-term sustainability of a company instead of the current liability payments. The solvency ratio includes financial obligations in bo...