The cost of inventory includes the costs of purchase, the costs of conversion, and other costs of bringing the inventory to its present location and condition.
Last modified January 28th, 2020
Tag: Tutorials
Classification of Cash Flows
Utilities Expense
Prepaid Expenses
Depreciation Depletion and Amortization
The terms depreciation depletion and amortization are often used to mean the same thing, the reduction in the value of an asset.
Most assets have a limited life and therefore reduce in value over time. An estimate of this reduction in value is charged as an expense to the income statement account each accounting period.
To be more specific about the terms depreciation depletion and amortization, we will look at an example of each.
Last modified June 12th, 2020
Intangible Assets
Intangible assets are assets which lack physical substance. Examples include patents and copyrights which have a limited life and are amortised, and trademarks which have an indefinite life and are subject to impairment reviews.
In each case the journal entries show the debit and credit account together with a brief narrative.
Last modified October 11th, 2022
Non Profit Chart of Accounts
A chart of accounts is a list of all the names of the accounts found in the general ledger with an account code allocated to it.
A not for profit chart of accounts differs from a normal business in that it is split into statement of financial position and statement of activities accounts. These are the equivalent of the balance sheet and income statement.
An interactive nonprofit chart of accounts sample is provided to help you produce your own non profit standard chart of accounts.
Last modified December 9th, 2019
R and D Research & Development
Defined Contribution Pension Plan
Pension plans generally fall into two types, defined contribution pension plans or defined benefits pension plans. In a defined contribution pension plan, the contributions are known (defined) and guaranteed and the benefits will vary depending on the investment performance of the plan. In a defined benefits pension plan, the benefits are known (defined) and guaranteed and the contributions will vary depending on the amount needed to fund the defined benefits.
Last modified January 8th, 2020
Membership Dues
LIFO Reserve
What is a Contra Revenue Account?
Contra means against. In bookkeeping terms, a contra revenue account refers to an account which is offset against a revenue account.
As a revenue account is normally a credit balance, a contra revenue account will normally be a debit balance. When the two balances are offset against each other they show the net balance of both accounts.
Last modified January 27th, 2023