Accounting




Q&A for the topic, Bookkeeping

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How do you record an asset that was partially financed?


Are payroll withholding taxes an expense or a liability?


Why is the P&L profit entered on the credit side of the balance sheet?


How does one prepare a company’s first bank statement reconciliation?


If a customer pays for the same invoice twice, should the customer be informed?


What is the chart of accounts?


What is the difference between paid in capital and retained earnings?


What does the term organic growth mean?


What is meant by reconciling an account?


How should the cost of a yearly subscription for a newspaper be recorded?


What is the difference between entries in a general journal versus a general ledger?


What is reported as property, plant and equipment?


Where do credit card payments get recorded?


In what order are liabilities listed in the chart of accounts?


What is the difference between a trial balance and a balance sheet?


How do I record exterior cement work? Is it an asset or an expense?


What is a classified balance sheet?


What is the journal entry to record a one-year subscription for a magazine?


Is contributed capital a non-current asset or a current asset, and is it a debit or credit?


Why can a retailer record its purchase of merchandise as a debit to purchases within the cost of goods sold, instead of the asset inventory?


How do you record a check that clears the bank months after it was voided?


What is the difference between reserve and allowance?


What is the entry when a company lends money to an employee?


Why is a product that sells for $50 reported in inventory at its cost of $40?


Should a retailer’s delivery surcharges be reported as revenues or as other income?


How do you report a write-down in inventory?


How do I determine my payroll tax liabilities?


What adjustment is needed when a check that was written in a previous month appears on the current month’s bank statement?


Is the sales tax on merchandise purchased for resale included in inventory?


What is the difference between cost and expense?


If inventory is understated at the end of the year, what is the effect on net income?


How much do you depreciate an asset and when?


Why is the distinction between product costs and period costs important?


Is a prepaid expense recorded initially as an expense?


What if an employee’s actual vacation payment is greater than the amount that has been accrued?


What is an unpresented cheque or check and does it require an adjustment to the balance sheet?


Are repairs to office equipment an expense?


Is an entry made for outstanding checks when preparing a bank reconciliation?


What is the cost of goods sold?


What is the entry for a loan to an employee?


How is the account Cash Short and Over used?


Why is depreciation on the income statement different from the depreciation on the balance sheet?


What is the difference between an adjunct account and a contra account?


How many days after a month ends should the bank reconciliation be done?


What is the meaning of debtor?


Does sales commission get reported in the income statement?


What are the effects of depreciation?


What is the difference between reserve and provision?


A credit is not a normal balance for what accounts?


What is the difference between unearned revenue and unrecorded revenue?


Is there a difference between the accounts Purchases and Inventory?


What is a T-account?


What are some reasons that cause the balance on the bank statement to differ from the cash balance on the books?


What is the Social Security tax rate for 2008?


What is accrued payroll?


What is the accounting cycle?


What is the difference between loan interest and bank loan repayment?


Should an owner’s compensation be recorded as an expense or in the Drawing account?


How does the accounting equation stay in balance when the monthly rent is paid?


What is the accounting entry to close the sole proprietorship drawing account?


What are reversing entries and why are they used?


Should inventories be reported at their cost or at their selling prices?


What are accrued expenses and when are they recorded?


What is a line of credit?


How do you estimate the amount of uncollectible accounts receivable?


What is the difference between wages and salary?


What should be the entry when goods are purchased at a discount?


What is the meaning of equity?


What is the difference between product costs and period costs?


Why is Rent Expense a debit and Service Revenues a credit?


How should the sale of gift certificates be recorded in the general ledger?


When do you put parentheses ( ) around a number?


How do you record a payment for insurance?


What is the provision for bad debts?


What is the difference between expense and loss?


What is a suspense account?


What is miscellaneous expense?


What is the deferred revenue?


What is columnar?


If a company earns a profit, which balance sheet items change?


How, when and why do you prepare closing entries?


Which accounts get closed at the end of a fiscal year?


How do you record a return deposit item on a bank statement?


How does petty cash affect expenses?


What is the difference between revenue, income, and gain?


Kindly illustrate various depreciation methods.


Would you please explain unearned income?


What is an imprest system of petty cash?


What is a nominal account in accounting?


Is the sale of a plant asset recorded in the sales account?


What is the procedure for preparing a trial balance?


What is the role of a company’s controller?


What is the difference between accounts payable and accounts receivable?


What is the abbreviation for debit and credit?


What is the difference between a bookkeeper and an accountant?


What is the accounting journal entry for depreciation?


Is sales tax an expense or a liability?


What is OEM and EOM?


What does it mean to replenish the petty cash fund?


How do you record the sale of land?


What is a T-account?


Are undeposited checks reported as cash?


What is the difference between a cost and an expense?


What is the difference between Social Security and Medicare taxes?


Are transportation-in costs part of the cost of goods sold?


Is advertising an asset or an expense?


What is the accounting equation?


What is the difference between adjusting entries and closing entries?


What does crossfoot mean?


What is the proper accounting for supplies?


What is the difference between a trial balance and a balance sheet?


What is the significance of FOB Shipping Point and FOB Destination?


What is the difference between a trial balance and a balance sheet?


Which accounts normally have debit balances?


What is the difference between a general ledger and a general journal?


Should receipts be recorded using the date the money was received or the date the money was deposited in the bank accounts?


Our income statement shows wide fluctuations in utilities expense from month to month. I suspect our accounting is not proper. Any suggestions?


What is a provision for discounts allowable?


What is the Purpose of Control Accounts?


How do the responsibilities of a bookkeeper differ from those of an accountant?


What Does Double Entry Mean?


The balance sheet and income statement are connected.


Reducing the Need for Accruing Expenses


Adjusting Entries



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