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Charlene Helm

Sales Returns and Allowances Recording Returns in Your Books

A purchase return journal records the details of the purchase made through any of the modes. When it returns these goods to the supplier, the accounting entries may differ. Some suppliers may offer exchange products for the returned goods. However, companies do not record this transaction since it results in a net effect of zero. […]

Statement of cash flows definition

This is clearly seen in the example since the company generates $20,000 in positive cash flow through the sales of previously owned stocks. As you can see from this investing activities example, Company X generated a negative cash flow from investing activities for the year. However, as discussed earlier, this is not necessarily  bad  for […]

Business Liabilities: What Are They?

Business liabilities are, by definition, the amounts owed by a business at any one time. Liabilities expected to be settled within one year are classified as current liabilities on the balance sheet. All other liabilities are classified as long-term liabilities on the balance sheet. The yin to a liability’s yang is an asset, which is […]

How Does US Accounting Differ From International Accounting?

In addition, certain differences exist between the detailed requirements of IAS 7 and ASC 230, which could affect dual preparers. See KPMG Handbook, Statement of cash flows, to learn more about the US GAAP requirements. Inventory represents a significant part of the balance sheet for many companies. In us accounting vs international accounting accounting for inventory […]

Long Term Debt Definition, Guide, How to Model LTD

Below is a screenshot of CFI’s example on how to model long term debt on a balance sheet. As you can see in the example below, if a company takes out a bank loan of $500,000 that equally amortizes over 5 years, you can see how the company would report the debt on its balance […]

Tips for simple bookkeeping for a small eBay shop

And while Zoho syncs with more third-party apps now than ever before, its integrations are pretty glitchy. Zoho syncs best with itself—not a problem if you love the Zoho suite of products, but definitely an issue if you want to add more business apps. I saw the box with the text Important eBay User Agreement […]

Understanding Pricing and Interest Rates

To calculate the value of a zero-coupon bond, we only need to find the present value of the face value. Carrying over from the example above, the value of a zero-coupon bond with a face value of $1,000, YTM of 3% and 2 years to maturity would be $1,000 / (1.03)2, or $942.59. Put simply, […]

What are prepaid expenses?

When the insurance coverage comes into effect, it is moved from an asset and charged to the expense side of the company’s balance sheet. In this case, the company’s balance sheet may show corresponding charges recorded as expenses. Guaranteed issue life insurance is a small whole life insurance policy with no medical questions or exam. […]