If there is a one-sided error that is corrected by the journal entries then you can use the suspense account for credit or debit either. A suspense account is used…
By implementing these comprehensive strategies, you can effectively reduce your average collection period, optimize your cash flow, and improve your overall financial health. Remember that consistent and proactive management of…
Ratio analysis is a fundamental tool in financial statement analysis that involves calculating various financial ratios to assess a company's performance, liquidity, solvency, and efficiency. These ratios include liquidity ratios,…
The ending cash balance on the cash flow statement (CFS) must match the cash balance recognized on the balance sheet for the current period. The composition of the balance sheet…
Net realizable value (NRV) in accounting is the estimated selling price of an asset in the ordinary course of business, minus any costs to complete and sell the asset. NRV…
Explicit Cost is the cost which is actually incurred by the organization, during production. The former is an out of pocket cost, while the latter is an opportunity cost. Whilst…
At first, you record the cash in December into accounts receivable as profit expected to be received in the future. Then, in February, when the client pays, an adjusting entry…
There are different reasons why to engage in financial modeling as a startup. Depending on the desired outcomes and the corresponding complexity of your financial model you can decide whether…
With management accounting, the financial experts can work on budgets and present the statistics to the management to assist them to reach a decisive platform. Management accounting facilitates this innate…