Two accounting methods, Perpetual and Periodic Inventory Systems, are used to record inventory-related transactions. Each method has different approaches to recording transactions including purchase, returns, discounts, and sales, affecting the treatment of inventory and related expenses on financial statements.
There are five types of events that may alter the ownership, quantity, or value of a firm’s assets, each subsequently impacting the Balance Sheet and requiring careful documentation.
An introduction to the system of double-entry bookkeeping. Including a glimpse into how dual entries help maintain balance sheet equilibrium.
The Proportional and Incremental methods are two ways companies can allocate the lump sum total earned on a sale of multiple securities. This is a clear explanation with a step-by-step example.
