What is Sales Journal? Definition and Types of Sales Journal
It does more than record the total money a business receives from the transaction. Sales journal entries should also reflect changes to accounts such as Cost of Goods Sold, Inventory, sales journal and Sales Tax Payable accounts. At the end of each accounting period (usually monthly), the sales journal double entry is used to update […]
Journal Entries Examples Format How to Use Explanation
Since most companies have many different accounts, their general ledgers can be extremely long. A T-account is used to track specific transactions, while the balance sheet is a summary of a company’s overall financial position. Both statements are important tools in accounting and finance, and they are used to help stakeholders understand a company’s financial […]
Assets Turnover Ratio Formula, How to Calculate, Definition & Example
Sometimes, investors and analysts are more interested in measuring how quickly a company turns its fixed assets or current assets into sales. In these cases, the analyst can use specific ratios, such as the fixed-asset turnover ratio or the working capital ratio to calculate the efficiency of these asset classes. The working capital ratio measures […]
Accounts payable explanation, journal entries, examples
When the AP department receives the invoice, it records a $500 credit in accounts payable and a $500 debit to office supply expense. Management can use AP to manipulate the company’s cash flow to a certain extent. For example, if management wants to increase cash reserves for a certain period, they can extend the time the […]
Marketing A Bookkeeping Business + How To Create A Marketing Plan
This method is often used by small businesses with straightforward accounting needs. Provide an itemized list of the services rendered, along with their corresponding costs. Transparently detailing the services ensures clarity and helps clients understand what they are being billed for. It also facilitates easier tracking of expenses and supports future reporting and analysis. Steps […]
