Basics 2 min read
Managing Inventory
Merchandise Inventory Merchandise inventories are the goods that are on hand for the production process or available for sale to…
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Basics 2 min read
Managing Expenses
The Expense Authorization system is a commonly used method to keep track of and control expenses. It is based upon…
Basics 3 min read
Managing Sales
Sales made by businesses can be broken down into the following main categories: • Cash sales • Sales on account Cash Sales…
Basics 1 min read
Petty Cash
The principal method for maintaining internal control of cash is using a checking account. However, a business usually has minor…
Basics 3 min read
Managing Cash
Bank Reconciliation Typically, a business will use a bank checking account to help control the flow of cash. Cash received…
Basics 3 min read
What Is Shareholders’ Equity?
Shareholders’ equity represents the net assets owned by the owners (the shareholders). Net assets are assets minus liabilities. For example,…
Basics 1 min read
What Is a Liability?
A liability is an obligation to pay an asset in the future. It is also known as debt. For example,…
Basics 1 min read
What Is an Asset?
Assets are economic resources that provide future benefits to the business. Examples include cash, accounts receivable, prepaid expenses, equipment, and…
Uncategorized 6 min read
Chemical Plant Safety Tips
A handful of safety lessons which are easy to forget when visiting a chemical plant: Dangerous chemicals: What if you…
Basics 2 min read
Generally Accepted Accounting Principles (GAAP)
The goal of accounting is to ensure information provided to decision makers is useful. To be useful, information must be…
Basics 6 min read
The elements of financial statements
Transactions and other events are grouped together in broad classes and in this way their financial effects are shown in…
Basics 5 min read
What Accountants Do
We have said that accounting consists of these functions: · Recording · Classifying · Summarizing · Reporting and evaluating the financial activities of a…
