Adjusting entries are necessary to update all account balances before financial statements can be prepared. These adjustments are not the result of physic...

The LIFO reserve is an account used to bridge the gap between FIFO and LIFO costs when a company uses the FIFO method to track its inventory but reports u...

In banking and accounting, the balance is the amount of money owed (or due) on an account. In bookkeeping, “balance” is the difference between the sum of ...

A cash payments journal is used to record transactions that are paid in the form of cash. A cash payment can include paying a creditor or commission fee, ...

The massive cost of World War one forced many major nations to print money. In order to avoid a collapse in the value of their currency, said countries un...

Fixed costs are sometimes called overhead costs. They are incurred whether a firm manufactures 100 widgets or 1,000 widgets. In preparing a budget, fixed ...

The four stages of the economic cycle are also referred to as the business cycle. These four stages are expansion, peak, contraction, and trough. During t...

In general, at least a bachelor’s degree in finance, business administration, accounting, or related area is required for controller positions. Bachelor’s...

Companies to whom debts are owed are called creditors. The specific debt owed to a company or creditor is typically called accounts receivables. Poorly ma...

Operational risk management reports must address both organization wide and line of business results. These reports must summarize operational risk exposu...