What is the difference between cost and expense? These two economic or accounting terms are often used interchangeably. We read them in accounting and financial reports. And as business owners, we have to learn how to differentiate the two. The following are the differences … [Read more...]
How to Improve Internal Control in a Small Business
There is always a risk in every business. It is an inevitable fact that unpleasant incidents happen to a business, like price overcharging, theft and embezzlement of assets (cash, inventory and other assets) that involves outsiders, customers who shoplift, dishonest employees, … [Read more...]
How to Prepare a Balance Sheet (Statement of Financial Position)
The balance sheet or the statement of financial position is one of the major components of financial statements, which include the income statement, statement of cash flow, statement of changes in equity and the notes to financial statements. The balance sheet gives readers of … [Read more...]
What is a Balance Sheet or Statement of Financial Position?
What is a balance sheet or a statement of financial position? Among the five components of a complete set of financial statements (i.e., balance sheet, statement of comprehensive income (income statement), statement of cash flow, statement of changes in equity and notes to … [Read more...]
How to Make Accounting Journal Entries
After identifying and measuring your business transactions, you will now move to the recording process of accounting. The first phase of recording is making the journal entries (journalizing) that should be recorded in the general journal or special journals, such as sales … [Read more...]