Comments on: Basic Accounting

By: linn

linn — Wed, 28 Sep 2011 17:40:23 +0000

great source for refresher info. thanks for your work

By: simeon

simeon — Sat, 10 Sep 2011 23:05:06 +0000

need anwer to this question, state the main categories of inventories for which the net realizable value is likely to be less than cost and describe how to indentify inventories that might be less than cost? have the right answer e-mail it to me plssss as soon as possible

By: Kenneth Meunier

Kenneth Meunier — Mon, 29 Aug 2011 17:03:47 +0000

Hello UKJob –

The income statement is important to show profit margins, and the cash flow statement is important to see if the profits are sustainable and real. This is because the income statement only reports profits not cash, and it can be more subject to accounting manipulation (like writing off massive charges in one period, and making subsequent periods look better to show profits that do not really exist).

So it is important to look at the balance sheet and the cash flow statement as well. A strong company has strong profit margins (income statement), cash flow to support what it is reporting as profits (cash flow statement), and growing equity as a result (balance sheet). Please see financial statement analysis for more information.

Kenneth

By: ukjob.org

ukjob.org — Mon, 29 Aug 2011 16:44:50 +0000

Very useful info. When analyzing companies online, which is the best statement to look at – cash flow or income statement? Which ones gives the most accurate information about the company?

By: Kenneth Meunier

Kenneth Meunier — Sun, 28 Aug 2011 21:56:51 +0000

Hi Judy -

Please see perpetual inventory system examples.

Kenneth

By: judy

judy — Sun, 28 Aug 2011 08:49:26 +0000

in relation with basic accounting am what transaction would be use to record freight in in perpetual inventory system S company sold merchandise on account to B co. P13500,FOB destination term 1/15 . n/eom. the cost of the merchandise sold was P9500.that’s all

By: j

Thu, 16 Jun 2011 12:56:19 +0000

NIFTY JOB THX

By: Kenneth Meunier

Kenneth Meunier — Fri, 29 Apr 2011 04:21:16 +0000

Debit Cash (or other asset received) and Credit unearned revenue since the legal service was not yet completed. When the services are performed, debit unearned revenue and credit revenue as they are completed.

By: Taz

Taz — Fri, 29 Apr 2011 02:24:21 +0000

What is the journal entry to recognize revenue of a legal 3 year contract.

By: Kenneth F. Meunier

Kenneth F. Meunier — Sat, 26 Feb 2011 18:52:23 +0000

Hi Carolyn -

Thank you very much for the positive feedback! It helps to know content is clear and understandable.

Kenneth