60) When are revenues reported in the accounting period?
Revenues are reported in the accounting period when service or goods have been delivered.
5) What is Microsoft Accounting Professional?
Microsoft Accounting Professional is an accounting application that offers reliable and fast processing of accounting transactions. It also helps with financial analysis.
33) Define the term material facts in accounting
Material facts are the bills or any document that becomes the base of every account book. It means that all those documents, on which account book is prepared, are called material facts.
93) Explain the meaning of long-term notes payable is or long-term liabilities
Long-term notes payable or liabilities are referred for that loan that is not supposed to due for more than a year.
These are the loans from banks or financial institution that are secured against various assets on the balance sheet, such as inventories.
61) List down important cost control techniques
Important cost controlling techniques are:
87) What is the master account?
A master account has subsidiary accounts. A master account receivable could be anything, it can be account receivable for various individual receivable accounts.
The revenue recognition principle dictates the process and timing by which revenue is recorded and recognized as an item in the financial statements based on certain criteria (e.g., transfer of ownership). The matching principle dictates that the timing of expenses be matched to the period in which they are incurred, as opposed to when they are actually paid.
Step back and give a high-level overview of the company’s current financial position, or companies in that industry in general. Highlight something on each of the three statements. Income statement: growth, margins, profitability. Balance sheet: liquidity, capital assets, credit metrics, liquidity ratios. Cash flow statement: short-term and long-term cash flow profile, any need to raise money or return capital to shareholders.
On the balance sheet, the asset account of inventory is reduced by the amount of the write-down, and so is shareholders’ equity. The income statement is hit with an expense in either COGS or a separate line item for the amount of the write-down, reducing net income. On the cash flow statement, the write-down is added back to operating cash flows as it’s a non-cash expense but must not be double-counted in the changes of non-cash working capital.
There are essentially four areas to consider when accounting for PP&E on the balance sheet: initial purchase, depreciation, additions (capital expenditures), and dispositions. In addition to these four, you may also have to consider revaluation. For many businesses, PP&E is the main capital asset that generates revenue, profitability, and cash flow.
Negative working capital is common in some industries, such as grocery retail and the restaurant business. For a grocery store, customers pay upfront, inventory moves relatively quickly, but suppliers often give 30 days (or more) credit. This means that the company receives cash from customers before it needs the cash to pay suppliers. Negative working capital is a sign of efficiency in businesses with low inventory and accounts receivable. In other industries, negative working capital may signal a company is facing financial trouble.
16) What is the meaning of a perpetual or periodic inventory system?
In the perpetual inventory system, the accounts are adjusted on a continual basis. In this inventory system, the accounts are changed periodically.
What types of accounting software programs are you familiar with?
If you know that the company uses specific accounting software that you’ve never used, focus instead on the software you have used and your confidence in those skills being transferable. Never lie about your level of familiarity, though.