Period Costs Definition, Example, vs Product Costs
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Category:
Bookkeeping
7 Articles
7
Non-Billable vs Billable Hours: What They Are and How to Track Them
However, say your accounts payable reduce relative to the previous period. This implies that you are meeting your short-term obligations at a faster rate. The content within this article is…
Best Practices for Improving Law Firm’s Accounts Receivable Process
When busy practices don’t have an effective law firm accounts receivable management process, unpaid client bills can get out of control in a hurry. Automated law firm accounts receivables software…
Degree of Operating Leverage Definition, Formula, and Example
In the base case, the ratio between the fixed costs and the variable costs is 4.0x ($100mm ÷ $25mm), while the DOL is 1.8x – which we calculated by dividing…
The Notion of Assets Equals Liabilities Plus Equity Explained
The fundamental accounting equation, also called the balance sheet equation, is the foundation for the double-entry bookkeeping system and the cornerstone of the entire accounting science. In the accounting equation,…
Allowance for Doubtful Accounts: Methods of Accounting for
If the total net sales for the period is $100,000, the company establishes an allowance for doubtful accounts for $3,000 while simultaneously reporting $3,000 in bad debt expense. Using the…
T-Account: Definition, Example, Recording, and Benefits
Operating costs are a type of expense so it is debited by £2000. The content in this article is meant to be used as a general accounting guideline. As always,…
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