Sales commissions are a selling expense. Selling expenses are reported on the income statement as part of the operating expenses. Often the operating expenses will appear as selling, general and administrative expenses or SG&A.

Sales commissions are not part of the cost of a product and therefore are not assigned to the cost of goods held in inventory or to the cost of goods sold.

Learn more about the Income Statement.

Many colleges and universities use their former students’ pass rates from earlier CPA Exams as an indicator of being a top accounting school. I recommend that you expand the criteria for finding the accounting school that is best for you. I recommend that you consider a college that

1) is [...] Continue Reading…

A certified public accountant, or CPA, is a person who has passed the very difficult CPA Exam and has been licensed by one of the 50 U.S. states (or one of five other jurisdictions). The CPA’s license is renewed if the state’s requirements continue to be met including continuing [...] Continue Reading…

A bookkeeper is usually employed by a small to mid-size company to record its transactions such as sales, purchases, payroll, collection of accounts receivable, payment of bills, etc. A very small company might use the services of a bookkeeping firm that employes bookkeepers.

Since bookkeepers typically do not have a [...] Continue Reading…

To be eligible for taking the CPA Exam you must meet the requirements of the board of accountancy in the U.S. state (or jurisdiction) in which you plan to take the CPA Exam.

Most states require CPA Exam candidates to have a minimum of 150 college credits including specified accounting [...] Continue Reading…