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	<title>AccountingCoach.com Q&#38;A</title>
	<atom:link href="http://blog.accountingcoach.com/feed/" rel="self" type="application/rss+xml" />
	<link>http://blog.accountingcoach.com</link>
	<description>The free website that explains accounting with amazing clarity.</description>
	<pubDate>Fri, 20 Nov 2009 14:02:21 +0000</pubDate>
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			<item>
		<title>What is the meaning of sundry and sundry debtors?</title>
		<link>http://blog.accountingcoach.com/sundry-and-sundr-debtors/</link>
		<comments>http://blog.accountingcoach.com/sundry-and-sundr-debtors/#comments</comments>
		<pubDate>Fri, 20 Nov 2009 13:03:53 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1880</guid>
		<description><![CDATA[Sundry can mean various, miscellaneous, or diverse. Sundry debtors might refer to a company&#8217;s customers who rarely make purchases on credit and the amounts they purchase are not significant.
I suspect that the term sundry was more common when bookkeeping was a manual task. In other words, prior to the low cost of computers and accounting [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/sundry-and-sundr-debtors/feed/</wfw:commentRss>
		</item>
		<item>
		<title>If an accrual adjusting entry increases an expense and a liability, how does the balance sheet remain in balance?</title>
		<link>http://blog.accountingcoach.com/expense-liability-balance/</link>
		<comments>http://blog.accountingcoach.com/expense-liability-balance/#comments</comments>
		<pubDate>Wed, 18 Nov 2009 10:41:57 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Equation]]></category>

		<category><![CDATA[Adjusting Entries]]></category>

		<category><![CDATA[Balance Sheet]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1877</guid>
		<description><![CDATA[An expense is a temporary account which reduces owner&#8217;s equity or stockholders&#8217; equity. The decrease in owner&#8217;s equity will offset the increase in the liability account.
Learn more about the Accounting Equation.
Related QuestionsAre utility bills an expense or a liability?If a mortgage payment is due by December 31, but the payment is not made until the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/expense-liability-balance/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is the difference between liquidity and liquidation?</title>
		<link>http://blog.accountingcoach.com/what-is-the-difference-between-liquidity-and-liquidation/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-difference-between-liquidity-and-liquidation/#comments</comments>
		<pubDate>Mon, 16 Nov 2009 10:05:22 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Balance Sheet]]></category>

		<category><![CDATA[Financial Ratios]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1866</guid>
		<description><![CDATA[Liquidity usually refers to a company&#8217;s ability to pay its bills when they become due. Liquidity is often evaluated by comparing a company&#8217;s current assets to its current liabilities. Working capital, the current ratio, and the quick ratio are referred to as liquidity ratios or short-term solvency ratios, since their calculations use some or all [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-difference-between-liquidity-and-liquidation/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is the meaning of pro rata?</title>
		<link>http://blog.accountingcoach.com/meaning-pro-rata/</link>
		<comments>http://blog.accountingcoach.com/meaning-pro-rata/#comments</comments>
		<pubDate>Thu, 12 Nov 2009 19:18:33 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Stockholders' Equity]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1873</guid>
		<description><![CDATA[Pro rata is a Latin term that means in proportion. Pro rata is related to prorate, a term used in cost accounting.
To illustrate the term pro rata, let&#8217;s assume that a company&#8217;s standard costing system has an unfavorable materials price variance of $400,000. If that amount is significant, the company will prorate the $400,000 to [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/meaning-pro-rata/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is the difference between financial accounting and management accounting?</title>
		<link>http://blog.accountingcoach.com/financial-accounting-management-accounting/</link>
		<comments>http://blog.accountingcoach.com/financial-accounting-management-accounting/#comments</comments>
		<pubDate>Wed, 11 Nov 2009 14:00:58 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Basics]]></category>

		<category><![CDATA[Accounting Careers]]></category>

		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Financial Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1860</guid>
		<description><![CDATA[Financial accounting has its focus on the financial statements which are distributed to stockholders, lenders, financial analysts, and others outside of the company. Courses in financial accounting cover the generally accepted accounting principles which must be followed when reporting the results of a corporation&#8217;s past transactions on its balance sheet, income statement, statement of cash [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/financial-accounting-management-accounting/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is the difference between accounts payable and accounts receivable?</title>
		<link>http://blog.accountingcoach.com/accounts-payable-accounts-receivable-2/</link>
		<comments>http://blog.accountingcoach.com/accounts-payable-accounts-receivable-2/#comments</comments>
		<pubDate>Mon, 09 Nov 2009 15:44:58 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounts Receivable and Bad Debt Expense]]></category>

		<category><![CDATA[Balance Sheet]]></category>

		<category><![CDATA[Bookkeeping]]></category>

		<category><![CDATA[Chart of Accounts]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1852</guid>
		<description><![CDATA[When a company purchases goods or services on credit, it will increase its accounts payable (a current liability). When a company sells goods or services on credit, it will increase its accounts receivable (a current asset).
Just as one company&#8217;s purchase is another company&#8217;s sale, the accounts payable of one company will be the accounts receivable [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/accounts-payable-accounts-receivable-2/feed/</wfw:commentRss>
		</item>
		<item>
		<title>In a bank reconciliation, what happens to the outstanding checks of the previous month?</title>
		<link>http://blog.accountingcoach.com/bank-reconciliation-outstanding-checks/</link>
		<comments>http://blog.accountingcoach.com/bank-reconciliation-outstanding-checks/#comments</comments>
		<pubDate>Thu, 05 Nov 2009 20:05:24 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Bank Reconciliation]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1848</guid>
		<description><![CDATA[The outstanding checks of the previous month will have either cleared the bank in the current month or will remain on the list of outstanding checks.
If an outstanding check of the previous month clears the bank (is paid by the bank) in the current month, you simply remove that check from the list of outstanding [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/bank-reconciliation-outstanding-checks/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Is Accounts Payable a debit or a credit or both?</title>
		<link>http://blog.accountingcoach.com/accounts-payable-debit-credit/</link>
		<comments>http://blog.accountingcoach.com/accounts-payable-debit-credit/#comments</comments>
		<pubDate>Wed, 04 Nov 2009 20:28:41 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Bookkeeping]]></category>

		<category><![CDATA[Debits and Credits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1845</guid>
		<description><![CDATA[Since Accounts Payable is a liability account, it should have a credit balance. The credit balance indicates the amount that company or organization owes to its suppliers or vendors.
The Accounts Payable account is credited when goods or services are purchased on credit terms (as opposed to being purchased for cash). Accounts Payable is debited when [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/accounts-payable-debit-credit/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Why are loan costs amortized?</title>
		<link>http://blog.accountingcoach.com/loan-costs-amortized/</link>
		<comments>http://blog.accountingcoach.com/loan-costs-amortized/#comments</comments>
		<pubDate>Tue, 03 Nov 2009 13:17:52 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Adjusting Entries]]></category>

		<category><![CDATA[Income Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1842</guid>
		<description><![CDATA[When loan costs are significant, they must be amortized because of the matching principle. In other words, all of the costs of a loan must be matched to the accounting periods when the loan is outstanding.
To clarify this, let&#8217;s assume that a company incurs legal, accounting, and registration fees of $120,000 during February in order [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/loan-costs-amortized/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Are repairs to office equipment and factory equipment period costs?</title>
		<link>http://blog.accountingcoach.com/repairs-office-equipment-factory-period-costs/</link>
		<comments>http://blog.accountingcoach.com/repairs-office-equipment-factory-period-costs/#comments</comments>
		<pubDate>Mon, 02 Nov 2009 15:34:37 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<category><![CDATA[Manufacturing Overhead]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1839</guid>
		<description><![CDATA[Repairs to office equipment are period costs. That is, the cost of the repairs to office equipment will be reported as a selling, general and administrative (SG&#38;A) expense in the period in which the repairs take place.
Repairs to factory equipment are not period costs. Rather, the costs of repairs to factory equipment are product costs. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/repairs-office-equipment-factory-period-costs/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Why would a company use double-declining depreciation on its financial statements?</title>
		<link>http://blog.accountingcoach.com/double-declining-depreciation-on-financial-statements/</link>
		<comments>http://blog.accountingcoach.com/double-declining-depreciation-on-financial-statements/#comments</comments>
		<pubDate>Sun, 25 Oct 2009 19:44:36 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Depreciation]]></category>

		<category><![CDATA[Income Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1836</guid>
		<description><![CDATA[Most companies will not use the double-declining balance method of depreciation on their financial statements. The reason is that it causes the company&#8217;s net income in the early years of an asset&#8217;s life to be lower than it would be under the straight-line method.
One reason for using double-declining balance depreciation on the financial statements is [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/double-declining-depreciation-on-financial-statements/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is a natural business year?</title>
		<link>http://blog.accountingcoach.com/natural-business-year/</link>
		<comments>http://blog.accountingcoach.com/natural-business-year/#comments</comments>
		<pubDate>Sat, 24 Oct 2009 23:11:59 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Basics]]></category>

		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Financial Accounting]]></category>

		<category><![CDATA[Income Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1833</guid>
		<description><![CDATA[A natural business year is the period of 12 consecutive months (or 52-53 consecutive weeks) ending at a low point of an organization&#8217;s activities. For example, a school district will have a natural business year of July 1 through June 30, since classes for the school year end in early June.
A retailer&#8217;s natural business year [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/natural-business-year/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is the difference between a ledger and a trial balance?</title>
		<link>http://blog.accountingcoach.com/ledger-versus-trial-balance/</link>
		<comments>http://blog.accountingcoach.com/ledger-versus-trial-balance/#comments</comments>
		<pubDate>Fri, 23 Oct 2009 15:13:45 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Bookkeeping]]></category>

		<category><![CDATA[Debits and Credits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1830</guid>
		<description><![CDATA[A ledger is often defined as a book of accounts. Today a ledger is most likely an electronic record or file containing a group of accounts. For example, a company&#8217;s general ledger is the record containing all of its asset, liability, owner equity, revenue, expense, gain, and loss accounts. Each of these accounts will contain [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/ledger-versus-trial-balance/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Why isn&#8217;t land depreciated?</title>
		<link>http://blog.accountingcoach.com/why-isnt-land-depreciated/</link>
		<comments>http://blog.accountingcoach.com/why-isnt-land-depreciated/#comments</comments>
		<pubDate>Thu, 22 Oct 2009 23:07:04 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Bookkeeping]]></category>

		<category><![CDATA[Debits and Credits]]></category>

		<category><![CDATA[Depreciation]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1827</guid>
		<description><![CDATA[Land is not depreciated because land is assumed to have an unlimited useful life.
Other long-lived assets such as land improvements, buildings, furnishings, equipment, etc. have limited useful lives. Therefore, the costs of those assets must be allocated to those limited accounting periods. Since land&#8217;s life is not limited, there is no need to allocate the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/why-isnt-land-depreciated/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Where can I find high quality business forms?</title>
		<link>http://blog.accountingcoach.com/high-quality-business-forms/</link>
		<comments>http://blog.accountingcoach.com/high-quality-business-forms/#comments</comments>
		<pubDate>Wed, 21 Oct 2009 20:12:50 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Business Forms]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1824</guid>
		<description><![CDATA[AccountingCoach.com has developed 80 business forms to help you prepare financial statements or to calculate financial ratios, breakeven points, standard costing variances, and more. Each of the 80 forms comes in two formats: blank and filled-in.
The business forms are professionally designed to help you learn and save time. You will reduce your frustration by filling [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/high-quality-business-forms/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is the Social Security tax rate for 2010?</title>
		<link>http://blog.accountingcoach.com/social-security-tax-rate-2010/</link>
		<comments>http://blog.accountingcoach.com/social-security-tax-rate-2010/#comments</comments>
		<pubDate>Mon, 19 Oct 2009 16:58:45 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Payroll Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1818</guid>
		<description><![CDATA[The Social Security tax withheld from employees during the year 2010 will be 6.2% of the first $106,800 of each employee&#8217;s taxable earnings. The employee&#8217;s earnings in excess of $106,800 are not subject to the Social Security tax. In addition to the Social Security tax, the entire amount of each employees&#8217; taxable earnings is subject [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/social-security-tax-rate-2010/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is the maximum FICA tax for 2010?</title>
		<link>http://blog.accountingcoach.com/maximum-fica-tax-2010/</link>
		<comments>http://blog.accountingcoach.com/maximum-fica-tax-2010/#comments</comments>
		<pubDate>Sat, 17 Oct 2009 12:32:05 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Payroll Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1814</guid>
		<description><![CDATA[The maximum FICA tax for the year 2010 remains the same as the 2009 FICA tax: 7.65% on each employee&#8217;s first $106,800 of taxable earnings (such as wages, salaries, bonuses, etc.) plus 1.45% of any employee&#8217;s taxable earnings in excess of $106,800.
The FICA tax is withheld from each employee&#8217;s earnings and it is also matched [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/maximum-fica-tax-2010/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What are the elements of financial statements?</title>
		<link>http://blog.accountingcoach.com/elements-of-financial-statements/</link>
		<comments>http://blog.accountingcoach.com/elements-of-financial-statements/#comments</comments>
		<pubDate>Fri, 16 Oct 2009 17:14:04 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Basics]]></category>

		<category><![CDATA[Balance Sheet]]></category>

		<category><![CDATA[Income Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1810</guid>
		<description><![CDATA[The elements of financial statements are the classes of items contained in the financial statements. Examples of elements include assets, liabilities, equity or net assets, revenues, expenses, gains, and losses.
You can learn more about the elements by reading the FASB&#8217;s Statement of Financial Accounting Concepts No. 6, Elements of Financial Statements, at www.FASB.org.
Related QuestionsIs the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/elements-of-financial-statements/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is accounting for price level changes?</title>
		<link>http://blog.accountingcoach.com/what-is-accounting-for-price-level-changes/</link>
		<comments>http://blog.accountingcoach.com/what-is-accounting-for-price-level-changes/#comments</comments>
		<pubDate>Wed, 14 Oct 2009 19:50:17 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Depreciation]]></category>

		<category><![CDATA[Financial Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1806</guid>
		<description><![CDATA[In 1979 the Financial Accounting Standards Board (FASB) issued its Statement of Financial Accounting Standards No. 33 entitled Financial Reporting and Changing Prices. (You will find the original Statement No. 33 on www.FASB.org.) In short, Statement No. 33 required large companies to report supplementary information on the effects of changing prices on its inventory and [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-accounting-for-price-level-changes/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Why does a bond&#8217;s price decrease when interest rates increase?</title>
		<link>http://blog.accountingcoach.com/bonds-price-interest-rates/</link>
		<comments>http://blog.accountingcoach.com/bonds-price-interest-rates/#comments</comments>
		<pubDate>Wed, 07 Oct 2009 13:10:32 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Bonds Payable]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1800</guid>
		<description><![CDATA[Bond prices decrease when interest rates increase because the fixed interest and principal payments stated in the bond will become less attractive to investors.
Let&#8217;s illustrate this with a $100,000 bond having a stated interest rate of 9% and having a remaining life of 5 years. This bond will pay $4,500 at the end of each [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/bonds-price-interest-rates/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is the difference between gains and proceeds in terms of long-term assets?</title>
		<link>http://blog.accountingcoach.com/gains-proceeds-assets/</link>
		<comments>http://blog.accountingcoach.com/gains-proceeds-assets/#comments</comments>
		<pubDate>Mon, 05 Oct 2009 13:06:10 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Cash Flow Statement]]></category>

		<category><![CDATA[Depreciation]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1797</guid>
		<description><![CDATA[When long-term assets are sold, the amounts received are referred to as the proceeds.
If the amount of the proceeds is greater than the book value or carrying value of the long-term asset at the time of the sale, the difference is a gain on the sale or disposal.  If the amount received is less than [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/gains-proceeds-assets/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is IFRS?</title>
		<link>http://blog.accountingcoach.com/what-is-ifrs/</link>
		<comments>http://blog.accountingcoach.com/what-is-ifrs/#comments</comments>
		<pubDate>Tue, 29 Sep 2009 11:58:15 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Careers]]></category>

		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Financial Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1792</guid>
		<description><![CDATA[IFRS is the acronym for International Financial Reporting Standards. IFRS is used throughout the world except in the United States where U.S. GAAP (generally accepted accounting principles) is followed.
There is an urgency for the U.S. to adopt the IFRS because of the growth in global financial markets, global commerce, acquisition of U.S. companies by corporations [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-ifrs/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Can I capitalize this year&#8217;s R&#038;D?</title>
		<link>http://blog.accountingcoach.com/r-and-d-research-and-development-costs/</link>
		<comments>http://blog.accountingcoach.com/r-and-d-research-and-development-costs/#comments</comments>
		<pubDate>Mon, 28 Sep 2009 21:48:40 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Principles]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1789</guid>
		<description><![CDATA[Generally, R&#38;D costs cannot be capitalized for U.S. financial statements according to the Statement of Financial Accounting Standards No. 2, Accounting for Research and Development Costs. The original pronouncement can be viewed at www.FASB.org/st.
We are not able to address the second part of your question, which involved the R&#38;D costs on the income tax returns. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/r-and-d-research-and-development-costs/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is a source document?</title>
		<link>http://blog.accountingcoach.com/what-is-a-source-document/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-source-document/#comments</comments>
		<pubDate>Thu, 24 Sep 2009 12:07:00 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1785</guid>
		<description><![CDATA[A source document is the original record containing the details to substantiate a transaction entered in an accounting system.
For example, a company&#8217;s source document for the recording of merchandise purchased is the supplier&#8217;s invoice supported by the company&#8217;s purchase order and receiving ticket.
A company&#8217;s source documents for its weekly payroll are the employees&#8217; time cards. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-source-document/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What does it mean to reclassify an amount?</title>
		<link>http://blog.accountingcoach.com/reclassify-an-amount/</link>
		<comments>http://blog.accountingcoach.com/reclassify-an-amount/#comments</comments>
		<pubDate>Tue, 22 Sep 2009 12:48:26 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Bookkeeping]]></category>

		<category><![CDATA[Chart of Accounts]]></category>

		<category><![CDATA[Debits and Credits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1781</guid>
		<description><![CDATA[To reclassify an amount often means to move an amount from one general ledger account to another general ledger account.
To illustrate, let&#8217;s assume that an invoice for $900 was recorded in the account Advertising Expenses. Upon review, the advertising manager informs the accountant that the amount should have been recorded in the account Marketing Supplies. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/reclassify-an-amount/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Is it possible to have a balance sheet for a single day?</title>
		<link>http://blog.accountingcoach.com/balance-sheet-for-day/</link>
		<comments>http://blog.accountingcoach.com/balance-sheet-for-day/#comments</comments>
		<pubDate>Thu, 17 Sep 2009 14:10:11 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Basics]]></category>

		<category><![CDATA[Balance Sheet]]></category>

		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1764</guid>
		<description><![CDATA[A balance sheet presents the amounts of a company&#8217;s assets, liabilities, and owner&#8217;s equity as of an instant or moment in time within a day. Usually it is the instant as of the end of the day. In other words, you can have a balance sheet each day, but the balance sheet amounts represent the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/balance-sheet-for-day/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is bad debts?</title>
		<link>http://blog.accountingcoach.com/what-is-bad-debts/</link>
		<comments>http://blog.accountingcoach.com/what-is-bad-debts/#comments</comments>
		<pubDate>Tue, 15 Sep 2009 14:48:18 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounts Receivable and Bad Debt Expense]]></category>

		<category><![CDATA[Adjusting Entries]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1760</guid>
		<description><![CDATA[The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be collected.  However, bad debts can also refer to notes receivable that will not be collected.
The bad debts associated with accounts receivable is reported on the income statement as Bad Debts Expense or Uncollectible Accounts Expense.
When the allowance method [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-bad-debts/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is the meaning of a favorable budget variance?</title>
		<link>http://blog.accountingcoach.com/favorable-budget-variance/</link>
		<comments>http://blog.accountingcoach.com/favorable-budget-variance/#comments</comments>
		<pubDate>Fri, 11 Sep 2009 13:13:57 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Improving Profits]]></category>

		<category><![CDATA[Standard Costing]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1756</guid>
		<description><![CDATA[A favorable budget variance indicates that an actual result is better for the company (or other organization) than the amount that was budgeted.
Here are three examples of favorable budget variances:
1. Actual revenues are more than the budgeted or planned revenues.
2. Actual expenses are less than the budget or plan.
3. Actual manufacturing costs are less than [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/favorable-budget-variance/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is a deferred cost?</title>
		<link>http://blog.accountingcoach.com/what-is-a-deferred-cost/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-deferred-cost/#comments</comments>
		<pubDate>Tue, 08 Sep 2009 14:36:02 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Adjusting Entries]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1750</guid>
		<description><![CDATA[I use the term deferred cost to mean a cost that has been incurred (and often already paid for) but will not appear as an expense on the income statement until a later accounting period. In the meantime, the deferred cost will be reported as an asset on the balance sheet. The justification for deferring [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-deferred-cost/feed/</wfw:commentRss>
		</item>
		<item>
		<title>How do you account for the rebate on an automobile?</title>
		<link>http://blog.accountingcoach.com/automobile-rebate-accounting/</link>
		<comments>http://blog.accountingcoach.com/automobile-rebate-accounting/#comments</comments>
		<pubDate>Fri, 04 Sep 2009 12:21:50 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1746</guid>
		<description><![CDATA[The rebate on the purchase of an automobile should be recorded as a reduction of the automobile&#8217;s cost.
The lower automobile cost will result in lower depreciation expense.
Learn more about Accounting Principles.
Related QuestionsWhat is book value?What are mixed costs?When should a product warranty liability be recorded?Is advertising an asset or an expense?How do you reduce a [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/automobile-rebate-accounting/feed/</wfw:commentRss>
		</item>
		<item>
		<title>How do you record a deposit on utilities?</title>
		<link>http://blog.accountingcoach.com/recording-deposit-on-utilities/</link>
		<comments>http://blog.accountingcoach.com/recording-deposit-on-utilities/#comments</comments>
		<pubDate>Thu, 03 Sep 2009 01:01:37 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Bookkeeping]]></category>

		<category><![CDATA[Chart of Accounts]]></category>

		<category><![CDATA[Debits and Credits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1742</guid>
		<description><![CDATA[A deposit on utilities is recorded with a debit to the asset account Utilities Deposit and a credit to the asset account Cash. The account Utilities Deposit will be reported as a current asset if the company expects the amount to be returned by the utilities within one year of the balance sheet date. If [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/recording-deposit-on-utilities/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is a budget variance?</title>
		<link>http://blog.accountingcoach.com/what-is-a-budget-variance/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-budget-variance/#comments</comments>
		<pubDate>Mon, 31 Aug 2009 12:31:12 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1731</guid>
		<description><![CDATA[A budget variance results when an actual amount is different from a planned or budgeted amount.
A budget variance can occur for revenues and for expenses.
Related QuestionsWhat is the meaning of a favorable budget variance?What causes an unfavorable fixed overhead budget variance?Is a favorable variance always an indicator of efficiency in operation?What is a budget?What is [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-budget-variance/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Where do dividends appear on the financial statements?</title>
		<link>http://blog.accountingcoach.com/dividends-financial-statements-2/</link>
		<comments>http://blog.accountingcoach.com/dividends-financial-statements-2/#comments</comments>
		<pubDate>Mon, 31 Aug 2009 12:15:55 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Financial Accounting]]></category>

		<category><![CDATA[Income Statement]]></category>

		<category><![CDATA[Stockholders' Equity]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1733</guid>
		<description><![CDATA[The dividends declared and paid by a corporation will be reported as a use of cash in the financing section of the statement of cash flows. Dividends are also reported on the statement of changes in stockholders&#8217; equity.
Dividends on common stock are not reported on the income statement since they are not expenses. Dividends on [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/dividends-financial-statements-2/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is GAAP?</title>
		<link>http://blog.accountingcoach.com/what-is-gaap/</link>
		<comments>http://blog.accountingcoach.com/what-is-gaap/#comments</comments>
		<pubDate>Mon, 31 Aug 2009 11:48:53 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Basics]]></category>

		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Financial Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1726</guid>
		<description><![CDATA[GAAP is the acronym for generally accepted accounting principles. In the U.S. that means
1) the basic accounting principles and guidelines such as the cost principle, matching principle, full disclosure, etc.,
2) the detailed standards and other rules issued by the Financial Accounting Standards Board (FASB) and its predecessor the Accounting Principles Board, and
3) generally accepted industry [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-gaap/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is a learning curve?</title>
		<link>http://blog.accountingcoach.com/what-is-a-learning-curve/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-learning-curve/#comments</comments>
		<pubDate>Fri, 28 Aug 2009 13:17:35 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Break-even Point]]></category>

		<category><![CDATA[Improving Profits]]></category>

		<category><![CDATA[Standard Costing]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1722</guid>
		<description><![CDATA[A common learning curve shows that the cumulative average time to complete a manual task which involves learning will decrease 20% whenever volume doubles. This is referred to as an 80% learning curve.
Let&#8217;s illustrate the 80% learning curve with a person learning to design and code websites of similar size and complexity. If the first [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-learning-curve/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is contained on a 10-column worksheet?</title>
		<link>http://blog.accountingcoach.com/ten-10-column-worksheet/</link>
		<comments>http://blog.accountingcoach.com/ten-10-column-worksheet/#comments</comments>
		<pubDate>Mon, 24 Aug 2009 20:09:47 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1716</guid>
		<description><![CDATA[The 10-column worksheet that I am familiar with will have the general ledger account titles in the first column followed by ten columns of amounts. There will be one debit and one credit column for each of the following five headings:

Trial Balance containing each account&#8217;s unadjusted balance,
Adjustments containing any adjusting entries,
Adjusted Trial Balance containing the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/ten-10-column-worksheet/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is the meaning of aging?</title>
		<link>http://blog.accountingcoach.com/what-is-the-meaning-of-aging/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-meaning-of-aging/#comments</comments>
		<pubDate>Fri, 21 Aug 2009 12:44:58 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounts Receivable and Bad Debt Expense]]></category>

		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1711</guid>
		<description><![CDATA[In accounting the term aging is often associated with a company&#8217;s accounts receivable. Accounts receivable arise when a company provides goods or services on credit. For example, a company may allow its customers to pay for goods or services 30 days after they are delivered. If customers do not pay as agreed, the company could [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-meaning-of-aging/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Is a postdated check considered to be currency?</title>
		<link>http://blog.accountingcoach.com/postdated-check-not-currency/</link>
		<comments>http://blog.accountingcoach.com/postdated-check-not-currency/#comments</comments>
		<pubDate>Wed, 19 Aug 2009 13:14:26 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Principles]]></category>

		<category><![CDATA[Accounts Receivable and Bad Debt Expense]]></category>

		<category><![CDATA[Bookkeeping]]></category>

		<category><![CDATA[Debits and Credits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1707</guid>
		<description><![CDATA[A postdated check&#8212;a check with a date that is later than the current date&#8212;is not considered to be currency. Further, the postdated check should not be reported as part of the Cash account balance until the date of the check.
If the postdated check was received as payment on accounts receivable, the accounts receivable balance is [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/postdated-check-not-currency/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is EOQ?</title>
		<link>http://blog.accountingcoach.com/what-is-eoq/</link>
		<comments>http://blog.accountingcoach.com/what-is-eoq/#comments</comments>
		<pubDate>Tue, 18 Aug 2009 13:34:41 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Improving Profits]]></category>

		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1703</guid>
		<description><![CDATA[EOQ is the acronym for economic order quantity. The economic order quantity is the optimum quantity of goods to be purchased at one time in order to minimize the annual total costs of ordering and carrying or holding items in inventory.
EOQ is also referred to as the optimum lot size.
The formula to calculate the economic [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-eoq/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Are sales discounts reported as an expense?</title>
		<link>http://blog.accountingcoach.com/sales-discounts-net-sales/</link>
		<comments>http://blog.accountingcoach.com/sales-discounts-net-sales/#comments</comments>
		<pubDate>Fri, 14 Aug 2009 12:17:51 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Bookkeeping]]></category>

		<category><![CDATA[Debits and Credits]]></category>

		<category><![CDATA[Income Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1700</guid>
		<description><![CDATA[Sales discounts are not reported as an expense. Rather, sales discounts are reported as a reduction of gross sales. In other words, Sales or Gross Sales minus Sales Discounts and Sales Returns and Sales Allowances = Net Sales.
Related QuestionsWhat is a provision for discounts allowable?What is the definition of net sales?What is a contra revenue [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/sales-discounts-net-sales/feed/</wfw:commentRss>
		</item>
	</channel>
</rss>
