Because preferred shares are often compared with bonds and other debt instruments, let’s look at their similarities and differences. Investors should carefully consider the features, advantages, and risks of non-cumulative preferred stock when making investment decisions. If the issuing company chooses not to pay a dividend for a specific period, the right to receive that […]
Inventory accounting, as outlined in the Corporate Standard, is widely used by companies and organizations around the world to report emissions. These programs and mandates have resulted in incentives for entities to reduce emissions within their inventory. Under this method, merchandise additions are made at the cost value, not the retail value. The retail value […]
The “inventory sold” refers to the cost of purchased goods (with the intention of reselling), or the cost of produced goods (which includes labor, material & manufacturing overhead costs). For example, say a business bought 100 units of inventory for $5 apiece, and later on bought 70 more units at $12 apiece. The FIFO valuation […]
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As technology transforms how people pay for services in the outside world, law firm accounting systems must also evolve to support digital payment options. It takes days to print paper invoices and paper checks, which then spend more days in the mail and sitting on desks. Electronic payments are far faster and much more convenient, […]
Firms also have intangible assets such as customer goodwill that may be listed on the balance sheet. If you use cash accounting, you record your transaction when cash changes hands. One of the first decisions you have to make when setting up your bookkeeping system is whether or not to use a cash or accrual […]
Any inventory held by the audit entity on account of another entity has not been recognized as part of inventory of the audit entity. Salaries and wages cost recognized during the period relates to the current accounting period. Any accrued and prepaid expenses have been accounted for correctly in the financial statements. When a company’s […]
When Sterling uses FIFO, all of the $50 units are sold first, followed by the items at $54. Cost of goods sold can be computed by using either periodic inventory formula method or earliest cost method. The FIFO method is allowed under both Generally Accepted Accounting Principles and International Financial Reporting Standards. The FIFO method […]
When Sterling uses FIFO, all of the $50 units are sold first, followed by the items at $54. Cost of goods sold can be computed by using either periodic inventory formula method or earliest cost method. The FIFO method is allowed under both Generally Accepted Accounting Principles and International Financial Reporting Standards. The FIFO method […]