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What is the meaning of base year? 22 Aug 2013 | 09:23 pm
In accounting, base year may refer to the year in which a U.S. business had adopted the LIFO cost flow assumption for valuing its inventory and its cost of goods sold. Under the dollar-value LIFO tech...
What is an outside accountant? 20 Aug 2013 | 05:55 pm
A company’s outside accountant is an accountant who is not an employee of the company. An outside accountant could be a sole practitioner or a member of a firm that provides accounting services to man...
What are some tips to make learning debits and credits easy? 13 Aug 2013 | 05:02 pm
Here are five tips to make learning debits and credits easier: 1. The accounts for expenses are nearly always debited. For example, when a company pays its monthly rent, it debits Rent Expense. If it ...
How can I learn bookkeeping? 8 Aug 2013 | 05:24 pm
You can learn bookkeeping at no cost on our website AccountingCoach.com. We recently expanded our Explanation of Bookkeeping, and we have many other topics that are relevant including debits and credi...
Why are revenues credited? 30 Jul 2013 | 06:01 pm
In accounting and bookkeeping, revenues are credited in order to cause an increase in the owner’s (or stockholders’) equity. The accounting equation (assets = liabilities + owner’s equity) may help yo...
Why are expenses debited? 25 Jul 2013 | 11:57 pm
In accounting and bookkeeping, expenses are debited in order to cause a decrease in the owner’s (or stockholders’) equity. The accounting equation (assets = liabilities + owner’s equity) may help you ...
What is scrap value? 24 Jul 2013 | 07:38 pm
In financial accounting, scrap value is associated with the depreciation of assets used in a business. In this situation, scrap value is defined as the expected or estimated value of the asset at the ...
What is boilerplate? 17 Jul 2013 | 07:57 pm
In business, boilerplate is a term to describe the standard wording that is contained in warranties and other documents. Generally, the information that is boilerplate is not subject to change. Boiler...
What are the ways to value inventory? 15 Jul 2013 | 07:45 pm
Generally, the balance sheet of a U.S. company must value inventory at cost. In other words, a company’s inventory is not reported at the sales value. (An exception occurs when a company’s inventory c...
What is a creditor? 12 Jul 2013 | 08:22 pm
A creditor may be a bank, supplier or person that has provided credit to a company. In other words, a company owes money to its creditors. The amounts owed to creditors are reported on the company’s b...
