Weighted Average Perpetual Inventory System
A perpetual inventory system involves recording every receipt and issue of stock that occurs so that there is a continuous record of the balance of each stock item on hand. … Read More
Impairement of Assets – Analysis and Examples
The developments within accounting conceptual frameworks over the last few decades have at their heart an attempt to bring greater relevance and use for users of financial reporting. As it … Read More
Accounting for Withholding Tax – Definition and Example
Withholding Tax is used in many tax jurisdictions as an efficient means of tax collection. It is efficient in that tax authorities are able to collect as taxable events take … Read More
Effective Interest Method – Analysis and Example
In our article that discussed how costs incurred in the issuing of debt should be accounted for we used the effective interest method in our example. Today we are coming … Read More
Debt Free Stories – Are They Really?
A lot of our personal finance blog series is about debt and in particular how to become debt free. This is in large part a reflection of our debt free … Read More
What is the Purpose of the Statement of Owner’s Equity
The purpose of the statement of owner’s equity is to reflect the changes in owners contributions and withdrawals, movements in reserves and the business’s profit or loss over time. The … Read More
Accounting for Sales Tax – Journal Entries
Many tax jurisdictions have a form of sales tax, which is a tax on the final customer of the good or service. In affect businesses collecting this tax are agents … Read More