Peter Hann

Answers to Common Questions About Assets

Common questions about assets include how to keep a register of assets, how to record the assets in the accounts, and how to compute depreciation. Investors may wish to know how to compute asset ratios that help to assess management performance or look at the liquidity of the enterprise.

When to Use a Capital Projects Fund

When engaging in significant capital projects, such as new building construction, additions or investments to improve energy efficiency, it’s important to utilize a robust accounting method. A capital projects fund will facilitate special reporting obligations and help keep the project on track.

Explaining Journal Entries and Rebates

An enterprise may offer rebates as part of a sales promotion campaign. To judge the effectiveness of the sales promotion the management must have accurate accounting information with respect to sales rebates. For this reason the accounting entries for rebates must be made correctly.

The Need for an Accounts Payable Flowchart

The accounts payable function within an enterprise is an important part of the day to day functioning of the business. Adequate internal controls are, therefore, vital and procedures need to be documented for referenced by management and staff, hence the need for an accounts payable flowchart.

The Use of Capital Budget Methods

The management of an enterprise will have a choice between various capital projects that they could engage in, and need to employ a capital budget method to assist in their decision. Methods for a capital budget include the calculation of the project’s net present value or internal rate of return.