The cash flow statement direct method is based on cash receipts and cash payments. Bookkeeping systems are not designed to easily access this information in the format required and cash flow direct method formulas are required to compute receipts from sales, interest and dividends and payments for expenses, interest and income tax.
Tag: References
Bank Transaction Journal Entries
The bank transaction journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of banking transactions. In each case the journal entries show the debit and credit account together with a brief narrative.
Accrued and Deferred Income and Expenditure Journals
The accrued and deferred income and expenditure journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of accrual and deferral transactions.
In each case the journal entries show the debit and credit account together with a brief narrative.
Adjusting Entries Examples
The adjusting journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of adjusting entry transactions.
In each case the journal entries show the debit and credit account together with a brief narrative.
Internal Control Procedures for Accounts Receivable
Internal controls for accounts receivable are used to reduce the risk of fraud and error in the accounts receivable process. The purpose of the accounts receivable internal control checklist is to ensure that valid sales invoices are properly recorded and that customers pay promptly.
Accounts Payable Internal Controls
Purchase Transaction Journal Entries
The purchases transactions journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of purchase transactions.
In each case the journal entries show the debit and credit account together with a brief narrative.
Preferred Stock Journal Entries
The preferred stock journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of preferred stock transactions.
In each case the journal entries show the debit and credit account together with a brief narrative.
Term Deposit Journal Entries
The term deposit journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of fixed term deposits.
In each case the journal entries show the debit and credit account together with a brief narrative.
Excel DB Function
Excel DDB Function
The Excel DDB function is one of many Excel financial functions, and can be used to calculate the declining balance depreciation of a long term asset. It has the syntax DDB (cost, salvage, life, period, factor).
By setting the factor parameter to either one or two, the function can be used to calculate either the declining balance depreciation or the double declining balance depreciation.