One difference between an invoice and statement is that invoices go out with each shipment or service provided. That's not how it works with a billing statement, meaning a list of all outstanding invoices and the total yet unpaid. You send statements... Read more
A timesheet invoice may also be generated by Operated equipment rental companies where the invoice will be a combination of timesheet based charges and equipment rental charges. Invoices are the backbone of the accounting system for small businesses.... Read more
The interest earned on loans and advances are just like interest earned on normal investments and is reported in the statement of cash flows according to US-GAAP or IFRS as discussed above. Figure 12.1 "Examples of Cash Flows from Operating, Investin... Read more
Your inventory’s book value should be $38,000 ($50,000 – $12,000). However, due to shrinkage, your actual inventory value is $35,000. Use the inventory shrinkage rate to find out how much value you lost. Theft, both internal and external to the... Read more
A simpler version of accounting is single entry accounting, which is essentially a cash basis system that is run from a check book. Under this approach, assets and liabilities are not formally tracked, which means that no balance sheet can be constru... Read more
Per that calculation, Seasonal Inspirations has inventory carrying costs of 24%. The capital cost is the cost that a business expands on carrying inventory. The cost is what a business will incur over a certain period of time, to hold and store its i... Read more
The gross profit would be $11,800 ($19,000 Sales – 7,200 cost of goods sold). The journal entries for these transactions would be would be the same as show above the only thing changing would be the AMOUNT of cost of goods sold used in the Jan 8 and ... Read more
Under the Exchange Act, audited transition-period financial statements would not need to be filed until the company files its December 31, 2009 Form 10-K. However, a registration statement declared effective after November 14, 2009 (based on the 45-d... Read more
In corporate finance, the debt-service coverage ratio is a measurement of the cash flow available to pay current debt obligations. There are other instances when notes payable or a promissory note can be issued, depending on the type of business you ... Read more
Accrued interest is the accumulated interest that has been recognized and recorded but has not been paid as of a specific date. The main variables that affect the calculation are the period between interest payments and the day count convention used ... Read more
