Journal entry for purchase returns or returns outwards is explained further in this article. The refunds and other allowances given by suppliers on merchandise originally purchased for resale are known as purchase returns and allowances. Firstly, there is a need to debit account payables and credit purchase returns. It can be seen that Debiting Payables […]

Detail of it could be found in the statement of change in equity and Noted to Financial Statements. Shareholders’ Equity, Owner’s Equity, or Stockholders’ Equity are called differently in the Balance Sheet because of the nature of the business. Prepaid is the amount that the entity pays to its suppliers in advance to secure, through, […]

GAAP compliance makes the financial reporting process transparent and standardizes assumptions, terminology, definitions, and methods. External parties can easily compare financial statements issued by GAAP-compliant entities and safely assume consistency, which allows for quick and accurate cross-company comparisons. When accounting principles allow a choice among multiple methods, a company should apply the same accounting method […]

However, the process can be challenging as they are built on different platforms. For detailed instructions, head to our tutorial on how to switch from Self-Employed to Online. The good news is that the QuickBooks Online plans are incredibly scalable, so you can start small and upgrade to a larger plan whenever you’re ready. The […]

This collateral acts as a security net, ensuring that, in case of default by the issuer, the debenture holders have a claim over the specified assets. These debentures come with a clear maturity date, post which they’re slated to be repaid. Companies are obligated to repay the principal amount to debenture holders on this maturity […]

The Federal Aviation Administration (FAA) also requires airlines to transport passengers with disabilities. Common carriers are essential entities that provide transportation and communication services to the public. They have a legal duty to serve everyone equally and are subject to specific regulations designed to ensure fair and safe operations. [2] Historically and even in case […]

Internal management uses the cost of a product to determine the prices of the products they produce. For this reason, the selection of accurate cost drivers has a direct impact on the profitability and operations of an entity. Accountants estimated the overhead and the volume of events for each activity. For example, management estimated the […]