The accounts payable subsidiary ledger definition is a term used in accounting to describe a specific type of financial ledger that records all of the transactions related to a company’s accounts payable. This ledger is used to track all of the money that a company owes to its vendors, suppliers, and other creditors. The accounts … Read more
Transferred-in costs are those costs incurred by a company in relation to a product or service that is being transferred from another company. These costs can include labor, materials, and overhead. In order to properly account for these costs, companies must keep track of them separately from other expenses. This allows for a more accurate … Read more
What are the different types of cost accounting? What are some examples of cost accounting? What is Cost Accounting? – Definition, Types and Examples What is basic costing? Basic costing is a costing method that includes all the costs associated with producing a product, including direct material costs, direct labor costs, and manufacturing overhead costs. … Read more
The Flow of Costs is the path that costs follow as they move through the various stages of production. The concept is important to managers because it provides a framework for understanding where costs originate and how they are eventually allocated to products or services. The Flow of Costs can be divided into three distinct … Read more
Negative assurance is a type of assurance that is typically provided by an independent auditor in order to provide assurance that there are no material misstatements in the financial statements of an entity. This type of assurance is typically provided in the form of a negative assurance letter, which is a letter in which the … Read more
Amortization is an accounting method used to gradually reduce the value of an intangible asset. The asset is typically spread out over a period of time and the value is reduced through periodic charges to income. For example, if a company acquired a patent for $100,000, it could amortize the cost over the life of … Read more
What is Double Entry Accounting and How is it Used? What are the 3 books of accounts? The three books of accounts are the general ledger, the accounts receivable ledger, and the accounts payable ledger. Is asset a debit or credit? According to the double entry accounting system, every transaction has two aspects which are … Read more
A slush fund is a secret reserve of money used to finance illicit or unauthorized activities. The term is often used in a political context to describe a politician’s personal fund used to finance election campaigns or other activities. What are the 4 types of money personalities? 1. The “Saver” The first type of money … Read more
The term “legacy asset definition” refers to the definition of an asset that is no longer in use or is no longer needed. This can occur when a company changes its business model or when new technology renders an old asset obsolete. In accounting, a legacy asset is typically valued at its historical cost, which … Read more
Cash accounting is an accounting method where revenue and expenses are only recognized when cash is exchanged. This means that revenue is only recognized when it is actually received, and expenses are only recognized when they are actually paid. Some businesses may choose to use cash accounting because it provides a more accurate picture of … Read more
