Financial Accounting Archives - Economic Grapevine https://economicgrapevine.com/category/financial-accounting/ The hub of Technology & Finance Sun, 11 Jun 2023 08:06:29 +0000 en-US hourly 1 https://economicgrapevine.com/wp-content/uploads/2020/12/cropped-cropped-Economic-Grapevine-Logo-new.png Financial Accounting Archives - Economic Grapevine https://economicgrapevine.com/category/financial-accounting/ 32 32 Journal Entry to Write Off Damaged Inventory https://economicgrapevine.com/journal-entry-to-write-off-damaged-inventory-a-step-by-step-guide/?utm_source=rss&utm_medium=rss&utm_campaign=journal-entry-to-write-off-damaged-inventory-a-step-by-step-guide Sun, 11 Jun 2023 08:05:21 +0000 https://economicgrapevine.com/?p=5667 In the dynamic world of business, handling inventory is a task that demands meticulous attention. Sometimes, due to various circumstances like natural disasters, mishandling, or obsolescence, inventory can get damaged.…

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]]> What are Net Purchases in Accounting/Business? https://economicgrapevine.com/what-are-net-purchases-in-accounting-business/?utm_source=rss&utm_medium=rss&utm_campaign=what-are-net-purchases-in-accounting-business https://economicgrapevine.com/what-are-net-purchases-in-accounting-business/#respond Sat, 25 Mar 2023 16:25:03 +0000 https://economicgrapevine.com/?p=5513 In the world of accounting and business, understanding the various terms and concepts is essential for accurate financial reporting and analysis. One such term, net purchases, plays a significant role…

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]]> https://economicgrapevine.com/what-are-net-purchases-in-accounting-business/feed/ 0 What Is Deposit In Transit & How to Account For It? https://economicgrapevine.com/what-is-deposit-in-transit-how-to-account-for-it/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-deposit-in-transit-how-to-account-for-it https://economicgrapevine.com/what-is-deposit-in-transit-how-to-account-for-it/#respond Fri, 24 Mar 2023 18:14:18 +0000 https://economicgrapevine.com/?p=5508 What Is Deposit In Transit? A Deposit In Transit refers to a situation where a company’s cash deposit has been made at the bank, but the transaction has not yet…

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]]> https://economicgrapevine.com/what-is-deposit-in-transit-how-to-account-for-it/feed/ 0 How to Account for Bad Debt In Accounting? Simply Explained https://economicgrapevine.com/how-to-account-for-bad-debt-in-accounting-simply-explained/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-account-for-bad-debt-in-accounting-simply-explained https://economicgrapevine.com/how-to-account-for-bad-debt-in-accounting-simply-explained/#respond Fri, 24 Mar 2023 11:25:02 +0000 https://economicgrapevine.com/?p=5498 How to Account for Bad Debt? Bad debt is an unfortunate reality for many businesses. It occurs when a customer fails to pay for goods or services provided, leaving the…

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]]> https://economicgrapevine.com/how-to-account-for-bad-debt-in-accounting-simply-explained/feed/ 0 The High-Low Method In Cost Accounting https://economicgrapevine.com/the-high-low-method-in-cost-accounting/?utm_source=rss&utm_medium=rss&utm_campaign=the-high-low-method-in-cost-accounting https://economicgrapevine.com/the-high-low-method-in-cost-accounting/#respond Fri, 27 Jan 2023 00:00:26 +0000 https://economicgrapevine.com/?p=4979 While some costs are purely variable and some fixed, there are mixed costs that contain both variable and fixed elements. The High-Low Method is a technique that you can use…

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]]> https://economicgrapevine.com/the-high-low-method-in-cost-accounting/feed/ 0 Recoverable Amount of an Asset https://economicgrapevine.com/recoverable-amount-of-an-asset/?utm_source=rss&utm_medium=rss&utm_campaign=recoverable-amount-of-an-asset Mon, 29 Mar 2021 16:28:12 +0000 https://whataccounting.com/?p=3514 Recoverable Amount Recoverable Amount can be defined as the higher of an asset’s value in use and fair value less costs of disposal. The Value in use refers to the…

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]]> What is meant by Fair Value less Costs to Sell? https://economicgrapevine.com/what-is-meant-by-fair-value-less-costs-to-sell/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-meant-by-fair-value-less-costs-to-sell Tue, 30 Mar 2021 00:49:30 +0000 https://whataccounting.com/?p=3531 Fair value in accounting means the price for which a non-current asset can be sold in an active market. The fair value should not be confused with the carrying amount…

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]]> How To Account For Assets Held For Sale? https://economicgrapevine.com/how-to-account-for-assets-held-for-sale/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-account-for-assets-held-for-sale Sat, 01 May 2021 06:43:02 +0000 https://whataccounting.com/?p=3760 In Accounting, non-current assets that the company intends to sell instead of using them in its operations are called assets held for sale and IFRS 5 explains the recognition and…

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]]> Entity-Specific Value https://economicgrapevine.com/entity-specific-value/?utm_source=rss&utm_medium=rss&utm_campaign=entity-specific-value Sat, 03 Apr 2021 01:59:34 +0000 https://whataccounting.com/?p=3581 Entity-specific Value Entity-specific value can be defined as the value that an entity expects to arise from the continuing use of an asset and from its disposal at the end…

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]]> Average Total Assets: Understanding the Metric and Its Importance https://economicgrapevine.com/average-total-assets/?utm_source=rss&utm_medium=rss&utm_campaign=average-total-assets Fri, 26 Mar 2021 14:47:09 +0000 https://whataccounting.com/?p=3441 What Does Average Total Assets Mean? Average total assets in accounting mean the average amount of assets of a company employed throughout the year. Average total assets can be calculated…

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