Bookkeeping

Cash disbursements journal explanation, format and example

Here, the accounts payable account is debited, and the cash account is credited. In this case the debit entry is to the accounts payable control account in the general ledger, and represents the reduction in the amount outstanding to suppliers. Had the cash disbursement journal recorded other items such cash purchases etc. then the debit …

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Classification of Accounting: Financial and Cost Accounting, Questions

Current assets are those assets that will turn into cash within the next twelve months. Long-term assets are those assets that would take longer than 12-months to convert them to cash and usually includes things such as land, equipment, building, furniture and fixtures. Revenue is the inflow of cash as a result of primary activities …

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How to Run the Bank Reconciliation Report in QuickBooks Online

Sometimes your current bank account balance is not a true representation of cash available to you, especially if you have transactions that have not settled yet. If you’re not careful, your business checking account could be subject to overdraft fees. If you’re reconciling an account for the first time, review the opening balance. More than …

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Responsibilities of a Customer Service Department

The customer service department includes an essential member known as the customer support specialist. These specialists assist customers in using services or products and focus on resolving short-term technical issues. To excel in their role, they need effective communication skills, patience, and empathy. In managerial accounting, the costs of running these service departments are allocated …

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Return on Equity ROE Calculation and What It Means

ROCE indicates the proportion of the net income that a firm generates by each dollar of common equity invested. Generally, investors have greater confidence in companies with a high and sustainable ROCE than in growth-oriented companies that cannot sustain growing returns on common equity. Corporate capital allocation decisions unrelated to core operations (e.g. preferred dividends, …

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What Are the 4 Phases of Accounting: A Clear Explanation

At the core of the accounting cycle lies the recording of financial transactions. This initial step involves capturing all business activities that result in a financial impact. In this step, accountants examine and interpret the financial effects of each transaction on the organization. They determine which accounts are involved and classify the transactions based on …

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Accounting Rate of Return Calculator ARR Calculator

It is important that you have confidence if the financial calculations made so that your decision based on the financial data is appropriate. ICalculator helps you make an informed financial decision with the ARR online calculator. This calculator estimates the average annual return of an entire account based on the starting and ending balances as …

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