Preparing a Static Budget: Good or Bad Idea?
When does one shift budgeting methods? Read why Mr. Sonic says, “There is still unfavorable factory overhead variance for October! Whatever …
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What is an Uneven Cash Flow Stream: Maximizing Liquidity
What if your company awaits approval of a loan? Maybe your accountant will say, “Sir, I know that our application will be approved. Even though we …
Continue ReadingPrimary Master Budget Components: The Major Operational Financial Plan
Pulling together a complete master budget is no small feat. What are the major components and how should they be presented?
Continue ReadingHow Are Standard Costs Developed - A Look at the Basics
A design consultant tells the company CEO, “Using Standard Costing for your products will increase their market. A 10% increase on the prime …
Continue ReadingHow to Make a Journal Entry for Outside Payroll Service
Because of the expertise required and constantly changing legislation, many business owners chose to use a payroll service for payroll preparation. …
Continue ReadingRevenue Recognition Principle vs. Matching Principle: Threshing Out Misconceptions About Accounting Standards
Comparing the Revenue Recognition Principle vs. the Matching Principle serves to determine to which aspect of the accounting process each is applied. …
Continue ReadingThe Savvy Business Owner's Steps in Preparing an Operating Budget
Preparing an operating budget can seem an overwhelming task, but a solid operating budget can help provide you invaluable information to use in the …
Continue Reading10 Revenue Recognition Methods Used in Business Accounting: How Should You Record Your Income?
There may be 10 different methods that can be used for revenue recognition, but not all of them are appropriate for every business model. Learn more …
Continue ReadingAnalyzing the Matching Principle With Step-By-Step Examples and Explanations
The matching principle in carrying out the accounting tasks and procedures has been widely cited in most accounting articles. This is quite natural, …
Continue ReadingUnderstanding Unearned Revenue: Definition and Methods of Accounting
Unearned revenue, if considered by its title alone, could mislead a learner into treating it as an income account. However, accounting rules dictate …
Continue ReadingAccounting for Stock Transactions: Examples of Treasury Stock Transactions & Stock Buyback Options
Accounting for stock transactions may seem complex but once the learner fully understands the structure of the stockholder’s equity accounts, …
Continue ReadingFind Out Here Why to Use a Flexible Budget
Why use a flexible budget? Flexible budget is both a performance management tool that allows effective management control and a tool that allows …
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