Basics
What are prepaid expenses?
Prepaid expenses are future expenses that have been paid in advance. You can think of prepaid expenses as…
August 16, 2021 · Boomi NathanBasics
Basics
What are nonmanufacturing overhead costs?
Nonmanufacturing overhead costs are the business expenses that are outside of a company’s manufacturing operations. These are often…
August 16, 2021 · Boomi NathanBasics
What is the difference between product costs and period costs?
A manufacturer’s product costs are the direct materials, direct labor, and manufacturing overhead used in making its products. (Manufacturing overhead is also referred…
August 16, 2021 · Boomi NathanBasics
What is the meaning of equity?
Equity is used in accounting in several ways. Often the word equity is used when referring to an ownership interest…
August 16, 2021 · Boomi NathanBasics
What is the cost of sales?
Cost of sales is the caption commonly used on a manufacturer’s or retailer’s income statement instead of the caption cost…
August 16, 2021 · Boomi NathanBasics
What is the difference between financial accounting and management accounting?
Financial accounting has its focus on the financial statements which are distributed to stockholders, lenders, financial analysts, and others outside of…
August 16, 2021 · Boomi NathanBasics
What are accrued expenses and when are they recorded?
Accrued expenses are expenses that have occurred but are not yet recorded through the normal processing of transactions. Since these…
August 16, 2021 · Boomi NathanBasics
What is petty cash?
Petty cash meaning Petty cash is a small amount of cash on hand that is used for paying small…
August 16, 2021 · Boomi NathanBasics
What is owner’s equity?
Owner’s equity is one of the three main components of a sole proprietorship’s balance sheet and accounting equation. Owner’s equity represents…
August 16, 2021 · Boomi NathanBasics
How do I calculate the amount of sales tax that is included in total receipts?
To calculate the sales tax that is included in a company’s receipts from items subject to sales tax, divide the…
August 16, 2021 · Boomi Nathan