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Adjusting entries explanation, purpose, types, examples

This also relates to the matching principle where the assets are used during the year and written off after they are used. Accrued expenses and accrued revenues – Many times companies will incur expenses but won’t have to pay for them until the next month. Since...

Stock Dividend Journal Entry Small Large Example

A stock dividend can be given to common stockholders, and most of them are issued in addition to, or instead of, cash dividends. The distribution of stock dividends is a discretionary decision, not a binding legal obligation. A common stock dividend is a distribution...

7 Financial Forecasting Methods to Predict Business Performance

Market research can be conducted via phone, email, text, in-person interviews, and more. It’s often done with the help of market research firms, which handle the interviewing and data collection. For example, a retailer might look at Q4 sales data from the past three...

Notes Payable Journal Entry: Example and How to Record

Next, you will record the cost to borrow the money by debiting the Interest Expense. The Cash account will reflect payment of not only the amount the Bricks Company initially received but also the interest expense it had how to prepare an income statement to pay to...

biannual vs semiannual: See the Difference

Biannual, biennial, and semiannual are adjectives that describe the frequency at which events occur. Also, remember that “bi-annual” has a second meaning; it can also signify an event that happens every other year. However, keep in mind that you can also use...

Difference Between Debtors and Creditors with examples

ABC Company must pay for the materials within the agreed upon terms, such as net 30 days. Keep in mind that someone who’s filed for bankruptcy may also be considered a debtor. A creditor may also take a debtor to court for failure to pay and this can lead to liens or...
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