They’re like a magnifying glass that zooms in on specific departments or areas, allowing us to see exactly how money is being spent. In cost accounting, costs are understood in terms of cost centers and cost units. If you have one, you can track its expenses to see if it’s actually retaining customers. To do […]
What is Cost Centre? Meaning, Working, Types, Purpose & Examples Read More »
A journal is the company’s official book in which all transactions are recorded in chronological order. Although many companies use accounting software nowadays to book journal entries, journals were the predominant method of booking entries in the past. Alternatively, if we use the perpetual inventory system, we can debit the inventory account and credit the
What is a Purchase Journal? Example, Journal Entries, and Explained Read More »
In the current year the debtor will pay a total of $25,000—that is, $7,000 in interest and $18,000 for the current portion of the note payable. Perhaps at this point a simple example might help clarify the treatment of unearned revenue. Assume that the previous landscaping company has a three-part plan to prepare lawns of
Current Liabilities: What They Are and How to Calculate Them Read More »
