Month: January 2010

Refer article on advantages and disadvantages of using the single step method. { Click here to go to Content Page on All other articles on commonly used ACCOUNTING REPORTS FORMAT }

See article on advantages and disadvantages of using the vertical presentation method { Click here to go to Content Page on All other articles on commonly used ACCOUNTING REPORTS FORMAT }

See article on advantages and disadvantages of using the horizontal presentation method { Click here to go to Content Page on All other articles on commonly used ACCOUNTING REPORTS FORMAT }

Below presented as a snapshot with explanatory a simple bank reconciliation statement showing the reconciliation between bank statement and cash book where there is no bank overdraft: { Click here to go to Content Page on all other topics on Bank reconciliation statements} { Click here to go to Content Page on All other articles … Read more

Below present a snapshot of a manufacturing account or statement. { Click here to go to Content Page on All other articles on commonly used ACCOUNTING REPORTS FORMAT }

RECEIVABLES Receivable are all amounts OWED to a company that are expected to be settled in cash. Receivables can be classified as either trade or non trade receivables. TRADE RECEIVABLES Mostly accounts or notes receivable. Trade receivables are the most common type of receivable reported in the balance sheet and usually represent the largest dollar … Read more

Credit Entries: Credit entries are the entries found on the right-hand side of any ledger account. An entry on the CREDIT side indicates:- A decrease in ASSETS; A decrease in EXPENSES An increase in LIABILITIES An increase in REVENUE or An increase in CAPITAL   The credit side and credit balance is not the same. … Read more

Current Portion Of Long-Term Debt The current portion of long term debt is the portion of the principal  on long-term debt that will be paid within the year. Usually payable in installments (for example, mortgage payments) Any unpaid interest on long-term debt is regarded as interest payable

Short-term Notes Payable Short-term interest bearing debt which is payable within the year Formal documents showing the amount borrowed(principal) and stating as an annual rate the percentage interest that must be paid Only the principal is recorded on the balance sheet under the title “Notes Payable.” Any interest that the company owes is called interest … Read more

An old but very useful strategic profit model or tool analysis is the Du Pont Model. Earlier article describe the basics of this model. Append below in a snaphot, the integration of margin management, asset management and financial management(click the image for a larger picture)