Accounting

In manufacturing companies or businesses (Also see Useful Accounting Practices for Small Businesses), their inventories will be divided into three main categories, which are the raw materials, work in process, as well as the finished goods. In today’s article, we will focus on the second one, the work in process. In accounting (Also see Work … Read moreWork in Process Accounting

In accounting, when we say “bottom line”, we are referring to the profit or loss (Also see What is the Relationship between the Profit and Loss Statement and the Balance Sheet?) of a company in an accounting period. This is the amount of income the company has earned after subtracting all the expenses. As it … Read moreWhat is Meant by “Bottom Line”?

Most business owners (Also see Tricks From Millionaire Business Owners) who do not know much about the documents or reports necessary for their business may not be able to produce the reports or financial statements needed for the operation of the business. Some of the essential documents and statements include the income statement, balance sheet, … Read moreHow Do Balance Sheet & Trial Balance Differ from Each Other?

Most business owners know that the company’s balance sheet (Also see Introduction of Balance Sheet) is one of the most vital financial statements to them because it is very helpful in revealing their company’s financial position. However, after they received the balance sheet from the bookkeeping firm in Singapore have generated for them, not all … Read moreBookkeeping – Reading a Balance Sheet

When you read the balance sheet (Also see Accounting – Preparation of Balance Sheet) of your company, you will see that this financial statement is divided into three different sections, which are the assets, liabilities and shareholder’s equity. The term “liability” refers to the amount of money that the company owes to another party. The … Read moreAccounting – Understanding Non-current Liabilities

A business could keep records of its financial transactions ( Also see Lesson for Financial Accounting ) using a single entry system or double entry system. The former is less work and less time consuming while the latter requires more effort and time. The single entry system is the earliest method to keep monetary records. … Read moreThe Differences Between the Single Entry System and Double Entry System