What Is An Assurance Associate? (Roles, Responsibilities, And Qualifications) An assurance associate is a professional responsible for providing independent assurance on the reliability and accuracy of an organization’s financial statements and other information. They work under an auditor hired by business entities and their main focus is to ensure that accounting principles and regulations are … Read more
What Is Advance Rent, And How Does It Work? The rental expense refers to the cost incurred by businesses for occupying a property for business purposes. This cost is considered a major operating expense, especially for retail businesses. Rental expense is usually paid in monthly installments, but some businesses opt to make payments in advance. … Read more
What Is Informal Reporting? Financial reporting is the process of documenting and communicating financial activities and performance in order to provide an accurate overview of a company’s financial standing. It is typically done on a quarterly or yearly basis and companies use financial reports to organize accounting data and report on current financial status. The … Read more
Why Does Account Payable (AP) Show A Negative Balance? Do you have a negative Accounts Payable balance showing on your books? If so, you’re not alone. Many businesses have this issue and it can be difficult to understand why. Accounts Payable (AP) is an important part of business accounting, and when it shows a negative … Read more
Cost of Goods Sold Construction Accounting Cost of Goods Sold Cost of goods sold includes all costs related to the creation of products or services that have been sold. Direct labor and direct materials are variable costs, while overhead is a fixed cost. For service businesses, the cost of goods sold will consist of labor, … Read more
Is Inventory A Fixed Assets? Inventory is not the fixed assets, it is the current assets on balance sheet. Company expects to sell inventory to generate revenue rather than use it in the operation as fixed assets. Inventory expect to last less than a year while fixed assets expect to last longer. What is inventory … Read more
Accrued Revenue Vs Accounts Receivable Key Takeaways Accrued revenue and accounts receivable are both important components of accrual accounting. Accrued revenue represents income that has been earned but not yet billed or received as payment. Accounts receivable represents income that has been billed but not yet received. Accrued revenue is classified as unearned revenue on … Read more
Depreciation On Office Equipment Key Takeaways Depreciation is a method used in accounting to allocate the cost of tangible assets over their useful life. The straight-line method is typically used to calculate depreciation on office equipment. Depreciation helps with budgeting for asset replacement and maintenance. The choice of depreciation method depends on the business’s size, … Read more
What Is Rate of Depreciation? Key Takeaways Depreciation is a method of accounting for the cost of an asset over its useful life. The rate of depreciation is the rate at which the cost of an asset is spread over its useful life. The rate of depreciation differs between assets and industries and is expressed … Read more
The Difference Between Cost of Goods Sold (COGS) and Cost of Services Sold (COSS) Key Takeaways COGS measures costs directly related to producing goods, while COSS measures costs directly related to providing services. Both COGS and COSS do not include indirect costs such as overhead and sales and marketing. Tracking COGS and COSS is important … Read more