Accounting articles

Flexible Budget Definition

This does not mean management ignores differences in sales level, or customers eating in a restaurant, because those differences and the management actions that caused them need to be evaluated, too. With a flexible budget, budgeted dollar values (i.... Read more

Contra Account Definition

Despite the use of a minus sign, debits and credits do not correspond directly to positive and negative numbers. When the total of debits in an account exceeds the total of credits, the account is said to have a net debit balance equal to the differe... Read more

Hdma Returned Goods Debit Memo Template

If you are using the bill-to/sold-to feature and the invoice was created using a bill-to customer, select the sold-to customer number for the debit or credit memo. You can execute this process whenever you want to automatically create a debit memo fo... Read more

How To Setup Your Chart Of Accounts

For example, Meals Expense might be a standalone account or it might be spread across the categories the meals relate to, such as Marketing, Conferences, or Travel. Gross margin is the profit after subtracting direct costs from sales. Everyone agrees... Read more

Is Leverage Good Or Bad?

For a company to be profitable and provide healthy dividends to shareholders, the return on investment from loans must be higher than any interest owed on those loans. Issuance recovered somewhat in the first quarter of 2021, though the recovery was... Read more

What Is The Gaap Matching Principle?

By placing both revenues and expenses in the same period, your business’s financial statements will contain measures of both your accomplishments and efforts. This transparency lets investors clearly assess your company’s performance.Debi... Read more

Inflation And Purchasing Power

A comparison of present value with future value best illustrates the principle of the time value of money and the need for charging or paying additional risk-based interest rates. Simply put, the money today is worth more than the same money tomorrow... Read more