Latest Easy Accounting Topics

These are the cost incurred to store the inventory into the warehouse or store rooms. This means that it covers all the depreciation expense of the machines and fixed assets used for keeping the inventory. It also involves the cost of freezing the inventories if the inventory is of perishable nature...
added on 06-Mar-2017
Ordering cost is the cost of ordering the raw materials required in the production. This is a broad term but in short we can define it by saying it involves all the cost from the creation of the requisition of the purchase order up to the payment to the supplier. During this, there will be cost of e...
added on 06-Mar-2017
Inventory is a vital part of trading and manufacturing companies. That is why, it is necessary to have accurate information about stock level. If the entity is not keeping up-to-date information about its inventories of raw materials, work in process and finished goods, then there are major chances ...
added on 06-Mar-2017
In order to record revenue, there is a specific accounting standard called IAS 18 Revenue Recognition. There is a complete guide as when to record revenue from the sale of goods, rendering of services and the receipt/ collection of royalties, dividends and interest. Sale of Goods In order to recogni...
added on 30-Jan-2017
In order to prepare the income statement for each period, there is a need to identify the relevant sales revenue and related cost to come up with the profit figure. In order to judge how to recognize revenue in construction, there are two methods which are mostly used in the industry: 1. Percentage ...
added on 28-Jan-2017
In construction contracts, customers pay the amount in installment and the full amount of revenue cannot be recorded in the firstyear of the project. Instead, a portion of the revenue is recorded using the estimates of the professional surveyor. As accountant cannot record the full amount as the rev...
added on 28-Jan-2017
ByConstruction Contracts, we mean the contract to build or develop the asset or combination of the assets closely related. As a matter of fact, construction takes more than one accounting period to complete, which causes various problems for the accountant such as: how much cost should be charged to...
added on 28-Jan-2017
There are several reasons for opening branch offices such as in order to market the product and to counter strike the movement of the competitor and to snatch the market share. Whatever is the reason, the head office is always interested in knowing the performance of the branch office and this can o...
added on 27-Jan-2017
In the branch setup, there are various types of branch system exist. They are different over the basis of right, duties, authorization and the level of independence from the head office. Some of the common types are as follows: branch receives the products/ goods from the head office and sells the s...
added on 27-Jan-2017
Branch is anycompany or office located at some distance from the head office of the company. This distant office has the full capacity to store inventories, make thesale and perform the recovery processes from the customers. The recovery that the branch collects from the customer is deposited into t...
added on 27-Jan-2017