Bookkeeping


What Is Accounts Payable

What Is Accounts Payable

The normal balance of any account is the balance which you would expect the account have, and is governed by the accounting equation. For example, if a company borrows cash from its local bank, the company will debit its asset account Cash since the company’s cash balance is increasing. The same entry will include...

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Adjustments To Retained Earnings On Income Statements

Adjustments To Retained Earnings On Income Statements

Prior period adjustments are corrections of errors that occurred on previous periods’ financial statements. They are reported on a company’s statement of retained earnings as an adjustment to the beginning balance. A balance sheet is a financial statement that reports a company’s assets, liabilities and shareholders’ equity at a specific point in time. If...

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Cash To Accrual Conversion

Cash To Accrual Conversion

Content Accruals Concept Cash Basis Accounting Imagine You Perform The Following Transactions In A Month Of Business: What Is The Accrual Principle? Accrual Accounting Vs Cash Basis Accounting: An Overview Accruals Concept «Accrual is designed to achieve the accounting goal of matching revenue and expenses in the same time period,» Charles Read, a certified...

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