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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>
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		<item>
		<title>What is burn rate?</title>
		<link>http://blog.accountingcoach.com/what-is-burn-rate/</link>
		<comments>http://blog.accountingcoach.com/what-is-burn-rate/#comments</comments>
		<pubDate>Wed, 25 Jan 2012 11:00:22 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Basics]]></category>
		<category><![CDATA[Cash Flow Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3252</guid>
		<description><![CDATA[In business, burn rate is usually the monthly amount of cash spent in the early years of a start-up business. Burn rate is an important metric since the new business must spend time and money developing a product or service before it obtains cash from revenues. If a company has $200,000 in initial cash and [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-burn-rate/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is COS?</title>
		<link>http://blog.accountingcoach.com/what-is-cos/</link>
		<comments>http://blog.accountingcoach.com/what-is-cos/#comments</comments>
		<pubDate>Mon, 23 Jan 2012 11:00:20 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Income Statement]]></category>
		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3223</guid>
		<description><![CDATA[In accounting, the acronym COS could indicate either cost of sales or cost of services. The income statements of many retailers and manufacturers use the phrase cost of sales instead of cost of goods sold. In other words, for these corporations COS is the same as COGS. The income statements of some service companies will [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-cos/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What are consolidated statements of operations?</title>
		<link>http://blog.accountingcoach.com/consolidated-statements-of-operations/</link>
		<comments>http://blog.accountingcoach.com/consolidated-statements-of-operations/#comments</comments>
		<pubDate>Wed, 18 Jan 2012 11:00:29 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Basics]]></category>
		<category><![CDATA[Financial Accounting]]></category>
		<category><![CDATA[Income Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3226</guid>
		<description><![CDATA[Consolidated statements of operations is the heading appearing on the financial statement also referred to as the income statement. In a small survey of 14 U.S. corporations with stock that is publicly-traded, I found that eight used the title consolidated statements of operations. The other six corporations used one of the following titles: consolidated statements [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/consolidated-statements-of-operations/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the internal rate of return?</title>
		<link>http://blog.accountingcoach.com/internal-rate-of-return/</link>
		<comments>http://blog.accountingcoach.com/internal-rate-of-return/#comments</comments>
		<pubDate>Mon, 16 Jan 2012 11:00:31 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Business Investments]]></category>
		<category><![CDATA[Present Value of a Single Amount]]></category>
		<category><![CDATA[Present Value of an Ordinary Annuity]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3240</guid>
		<description><![CDATA[The internal rate of return is the interest rate that will discount an investment&#8217;s future cash amounts so that the sum of the present values will be equal to cash paid at the beginning of the investment. In capital budgeting, the internal rate of return is also the interest rate that results in an investment [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/internal-rate-of-return/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is hurdle rate?</title>
		<link>http://blog.accountingcoach.com/what-is-hurdle-rate/</link>
		<comments>http://blog.accountingcoach.com/what-is-hurdle-rate/#comments</comments>
		<pubDate>Wed, 11 Jan 2012 11:00:47 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Business Investments]]></category>
		<category><![CDATA[Cost and Managerial Accounting]]></category>
		<category><![CDATA[Present Value of a Single Amount]]></category>
		<category><![CDATA[Present Value of an Ordinary Annuity]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3232</guid>
		<description><![CDATA[In capital budgeting, hurdle rate is the minimum rate that a company expects to earn when investing in a project. Hence the hurdle rate is also referred to as the company&#8217;s required rate of return or target rate. In order for a project to be accepted, its internal rate of return must equal or exceed [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-hurdle-rate/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the difference between the accounts rent receivable and rent revenue?</title>
		<link>http://blog.accountingcoach.com/rent-receivable-and-rent-revenue/</link>
		<comments>http://blog.accountingcoach.com/rent-receivable-and-rent-revenue/#comments</comments>
		<pubDate>Mon, 09 Jan 2012 17:49:21 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Basics]]></category>
		<category><![CDATA[Chart of Accounts]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3220</guid>
		<description><![CDATA[Rent Receivable is a balance sheet asset account which indicates the amount of rent that has been reported as having been earned, but the money has not yet been collected. Rent Revenue is an income statement account that reports the amount of rent that has been earned during a period of time. Under the accrual [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/rent-receivable-and-rent-revenue/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Where does the purchase of equipment show up on a profit and loss statement?</title>
		<link>http://blog.accountingcoach.com/purchase-of-equipment-profit-and-loss-statement/</link>
		<comments>http://blog.accountingcoach.com/purchase-of-equipment-profit-and-loss-statement/#comments</comments>
		<pubDate>Thu, 05 Jan 2012 15:13:44 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Basics]]></category>
		<category><![CDATA[Balance Sheet]]></category>
		<category><![CDATA[Depreciation]]></category>
		<category><![CDATA[Financial Accounting]]></category>
		<category><![CDATA[Income Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3216</guid>
		<description><![CDATA[The purchase of equipment that will be used in a business is not reported on the profit and loss statement. However, the depreciation of the equipment will be reported as depreciation expense on the profit and loss statements during the years that the equipment is used. For example, if a company buys equipment for $100,000 [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/purchase-of-equipment-profit-and-loss-statement/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the net book value of a noncurrent asset?</title>
		<link>http://blog.accountingcoach.com/what-is-the-net-book-value-of-a-noncurrent-asset/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-net-book-value-of-a-noncurrent-asset/#comments</comments>
		<pubDate>Wed, 04 Jan 2012 18:44:19 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Balance Sheet]]></category>
		<category><![CDATA[Depreciation]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3209</guid>
		<description><![CDATA[The net book value of a noncurrent asset is the net amount reported on the balance sheet for a long-term asset. To illustrate net book value, let&#8217;s assume that several years ago a company purchased equipment to be used in its business. The equipment&#8217;s cost was $100,000 and its accumulated depreciation as of its recent [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-net-book-value-of-a-noncurrent-asset/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Most popular accounting questions from 2011</title>
		<link>http://blog.accountingcoach.com/most-popular-accounting-questions-from-2011/</link>
		<comments>http://blog.accountingcoach.com/most-popular-accounting-questions-from-2011/#comments</comments>
		<pubDate>Thu, 15 Dec 2011 21:38:17 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3201</guid>
		<description><![CDATA[Here are the 20 most popular posts from the Accounting Coach Blog during 2011. New questions will be answered starting January 2012. Why does LIFO usually produce a lower gross profit than FIFO? What is depreciation? Why is interest expense a nonoperating expense? When do you put parentheses ( ) around a number? What are [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/most-popular-accounting-questions-from-2011/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Why does LIFO usually produce a lower gross profit than FIFO?</title>
		<link>http://blog.accountingcoach.com/lifo-lower-profit-than-fifo/</link>
		<comments>http://blog.accountingcoach.com/lifo-lower-profit-than-fifo/#comments</comments>
		<pubDate>Tue, 29 Nov 2011 12:20:59 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3131</guid>
		<description><![CDATA[LIFO usually produces a lower gross profit than FIFO only because the costs of the goods purchased or produced have been increasing over the past decades. Since LIFO assigns the latest costs of the goods purchased or produced to the cost of goods sold, the rising costs mean a higher amount of cost of goods [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/lifo-lower-profit-than-fifo/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>What is the difference between the direct method and the indirect method for the statement of cash flows?</title>
		<link>http://blog.accountingcoach.com/direct-and-indirect-method-cash-flows/</link>
		<comments>http://blog.accountingcoach.com/direct-and-indirect-method-cash-flows/#comments</comments>
		<pubDate>Tue, 22 Nov 2011 12:01:21 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Cash Flow Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3119</guid>
		<description><![CDATA[The main difference between the direct method and the indirect method involves the cash flows from operating activities, the first section of the statement of cash flows. (There is no difference in the cash flows reported in the investing and financing activities sections.) Under the direct method, the cash flows from operating activities will include [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/direct-and-indirect-method-cash-flows/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a sole proprietorship?</title>
		<link>http://blog.accountingcoach.com/what-is-a-sole-proprietorship/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-sole-proprietorship/#comments</comments>
		<pubDate>Thu, 17 Nov 2011 12:09:23 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Basics]]></category>
		<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Chart of Accounts]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3115</guid>
		<description><![CDATA[A sole proprietorship is a form of business organization that is owned by one person. The owner is referred to as a sole proprietor. In accounting, the balance sheet of the sole proprietorship reflects the accounting equation: Assets = Liabilities + Owner&#8217;s Equity. Owner&#8217;s Equity consists of the owner&#8217;s capital account and also a drawing [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-sole-proprietorship/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Where does the interest paid on bank loans get reported on the statement of cash flows.</title>
		<link>http://blog.accountingcoach.com/interest-paid-cash-flows-statement/</link>
		<comments>http://blog.accountingcoach.com/interest-paid-cash-flows-statement/#comments</comments>
		<pubDate>Mon, 14 Nov 2011 13:57:07 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Cash Flow Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3111</guid>
		<description><![CDATA[The interest paid on bank loans is included in the operating activities section of the statement of cash flows. This is the case for both short-term and long-term bank loans. However, the principal amounts that were borrowed and the amounts that were repaid are reported separately under financing activities. Under the indirect method, the interest [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/interest-paid-cash-flows-statement/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is depreciation?</title>
		<link>http://blog.accountingcoach.com/what-is-depreciation/</link>
		<comments>http://blog.accountingcoach.com/what-is-depreciation/#comments</comments>
		<pubDate>Sun, 13 Nov 2011 15:36:42 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Adjusting Entries]]></category>
		<category><![CDATA[Depreciation]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3105</guid>
		<description><![CDATA[Depreciation is the assigning or allocating of a plant asset&#8217;s cost to expense over the accounting periods that the asset is likely to be used. For example, if a business purchases a delivery truck with a cost of $100,000 and it is expected to be used for 5 years, the business might have depreciation expense [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-depreciation/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Where are short-term bank loans reported on the statement of cash flows?</title>
		<link>http://blog.accountingcoach.com/bank-loans-on-cash-flow-statement/</link>
		<comments>http://blog.accountingcoach.com/bank-loans-on-cash-flow-statement/#comments</comments>
		<pubDate>Sat, 12 Nov 2011 23:10:07 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Cash Flow Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3101</guid>
		<description><![CDATA[The cash inflows from new short-term bank loans and the cash outflows to repay the principal amount of short-term bank loans are reported in the financing activities section of the statement of cash flows. This is also true for long-term bank loans. The interest payments for short-term and long-term bank loans are reported in the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/bank-loans-on-cash-flow-statement/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Where can I find the amount of income taxes paid by a corporation?</title>
		<link>http://blog.accountingcoach.com/income-taxes-paid-by-corporation/</link>
		<comments>http://blog.accountingcoach.com/income-taxes-paid-by-corporation/#comments</comments>
		<pubDate>Fri, 11 Nov 2011 16:18:19 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Cash Flow Statement]]></category>
		<category><![CDATA[Financial Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3098</guid>
		<description><![CDATA[You can find the amount of income taxes paid by a corporation by reading its statement of cash flows and its notes to the financial statements. US GAAP requires corporations to report the amount of income taxes paid. The AICPA&#8217;s Accounting Trend and Techniques indicates that approximately half of the 500 large corporations that it [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/income-taxes-paid-by-corporation/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the maximum amount of earnings subject to the Social Security tax in 2012?</title>
		<link>http://blog.accountingcoach.com/earnings-social-security-tax-2012/</link>
		<comments>http://blog.accountingcoach.com/earnings-social-security-tax-2012/#comments</comments>
		<pubDate>Fri, 11 Nov 2011 00:41:28 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Payroll Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3095</guid>
		<description><![CDATA[The maximum amount of an employee&#8217;s 2012 earnings that is subject to the Social Security tax is $110,100. That amount is an increase from the 2011 taxable maximum of $106,800. The combination of the Social Security tax and the Medicare tax is often referred to as the FICA tax. However, there is no taxable maximum [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/earnings-social-security-tax-2012/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a valuation account?</title>
		<link>http://blog.accountingcoach.com/what-is-a-valuation-account/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-valuation-account/#comments</comments>
		<pubDate>Tue, 01 Nov 2011 00:35:10 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Balance Sheet]]></category>
		<category><![CDATA[Bonds Payable]]></category>
		<category><![CDATA[Chart of Accounts]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3088</guid>
		<description><![CDATA[In accounting, a valuation account is usually a balance sheet account that is used in combination with another balance sheet account in order to report the carrying amount of an asset or liability. An example of a valuation account that is associated with an asset is the Allowance for Doubtful Accounts. This account&#8217;s credit balance [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-valuation-account/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>When are expenses credited?</title>
		<link>http://blog.accountingcoach.com/when-are-expenses-credited/</link>
		<comments>http://blog.accountingcoach.com/when-are-expenses-credited/#comments</comments>
		<pubDate>Sat, 29 Oct 2011 02:27:48 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Adjusting Entries]]></category>
		<category><![CDATA[Debits and Credits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3085</guid>
		<description><![CDATA[While general ledger expense accounts are typically debited and have debit balances, there are times when the expense accounts are credited. Some instances when general ledger expense accounts are credited include: the end-of-year closing entries the reversing entry for a previous accrual adjusting entry involving an expense an adjusting entry to defer part of a [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/when-are-expenses-credited/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Why is interest expense a nonoperating expense?</title>
		<link>http://blog.accountingcoach.com/interest-expense-nonoperating/</link>
		<comments>http://blog.accountingcoach.com/interest-expense-nonoperating/#comments</comments>
		<pubDate>Fri, 28 Oct 2011 01:32:30 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Income Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3080</guid>
		<description><![CDATA[Interest expense is a nonoperating expense when it is not part of a company&#8217;s main operations. For example, a retailer&#8217;s main operations are the purchasing and sale of merchandise, and a manufacturer&#8217;s main operations are the production and sale of goods.  Neither the retailer nor the manufacturer has as its main operations the borrowing and [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/interest-expense-nonoperating/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is an outlier?</title>
		<link>http://blog.accountingcoach.com/what-is-an-outlier/</link>
		<comments>http://blog.accountingcoach.com/what-is-an-outlier/#comments</comments>
		<pubDate>Thu, 27 Oct 2011 02:14:05 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Cost and Managerial Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3076</guid>
		<description><![CDATA[In cost accounting, an outlier could be a cost or its related level of activity that is out of line with other observations. An outlier can be detected by plotting each observation&#8217;s cost and related level of activity onto a graph or scatter diagram. If one of those points deviates from the pattern of the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-an-outlier/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is prime cost?</title>
		<link>http://blog.accountingcoach.com/what-is-prime-cost/</link>
		<comments>http://blog.accountingcoach.com/what-is-prime-cost/#comments</comments>
		<pubDate>Mon, 24 Oct 2011 16:07:00 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Cost and Managerial Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3072</guid>
		<description><![CDATA[Prime cost is the combination of a manufactured product&#8217;s costs of direct materials and direct labor. In other words, prime cost refers to the direct production costs.  Indirect manufacturing costs are not part of prime cost. Related QuestionsWhat is a line of credit?What is historical cost?How do you calculate the cost of goods sold for [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-prime-cost/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Why is an amount in the cash flows from investing activities shown in parenthesis?</title>
		<link>http://blog.accountingcoach.com/cash-flows-investing-activities-parentheses/</link>
		<comments>http://blog.accountingcoach.com/cash-flows-investing-activities-parentheses/#comments</comments>
		<pubDate>Sat, 22 Oct 2011 15:20:09 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Cash Flow Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3059</guid>
		<description><![CDATA[An amount shown in parenthesis within the investing activities section of the cash flow statement indicates that cash was used to purchase a long-term asset. For example, if a company spent $350,000 to purchase property, plant and equipment, it will be reported in the cash flows from investing activities as Capital expenditures&#8230;.(350,000). The amounts appearing [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/cash-flows-investing-activities-parentheses/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is LIFO?</title>
		<link>http://blog.accountingcoach.com/what-is-lifo/</link>
		<comments>http://blog.accountingcoach.com/what-is-lifo/#comments</comments>
		<pubDate>Wed, 12 Oct 2011 02:44:10 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3049</guid>
		<description><![CDATA[LIFO is the acronym for last-in, first-out. It is a cost flow assumption that can be used by U.S. companies in moving the costs of products from inventory to the cost of goods sold. Under LIFO the latest or more recent costs of products purchased (or produced) are the first costs expensed as the cost [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-lifo/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What are cost flow assumptions?</title>
		<link>http://blog.accountingcoach.com/what-are-cost-flow-assumptions/</link>
		<comments>http://blog.accountingcoach.com/what-are-cost-flow-assumptions/#comments</comments>
		<pubDate>Mon, 10 Oct 2011 13:59:05 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3039</guid>
		<description><![CDATA[The phrase cost flow assumptions often refers to the methods available for moving the costs of a company&#8217;s products from its inventory to its cost of goods sold. In the U.S. the cost flow assumptions include FIFO, LIFO, and average. (If specific identification is used, there is no need to make an assumption.) FIFO, LIFO, [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-are-cost-flow-assumptions/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>What is owner&#8217;s equity?</title>
		<link>http://blog.accountingcoach.com/what-is-owners-equity/</link>
		<comments>http://blog.accountingcoach.com/what-is-owners-equity/#comments</comments>
		<pubDate>Mon, 26 Sep 2011 11:52:04 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Basics]]></category>
		<category><![CDATA[Accounting Equation]]></category>
		<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Balance Sheet]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3034</guid>
		<description><![CDATA[Owner&#8217;s equity is one of the three main components of a sole proprietorship&#8217;s balance sheet and accounting equation. Owner&#8217;s equity represents the owner&#8217;s investment in the business minus the owner&#8217;s draws or withdrawals from the business plus the net income (or minus the net loss) since the business began. Mathematically, the amount of owner&#8217;s equity [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-owners-equity/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What are the two methods for recording prepaid expenses?</title>
		<link>http://blog.accountingcoach.com/methods-recording-prepaid-expenses/</link>
		<comments>http://blog.accountingcoach.com/methods-recording-prepaid-expenses/#comments</comments>
		<pubDate>Wed, 21 Sep 2011 13:06:24 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Adjusting Entries]]></category>
		<category><![CDATA[Balance Sheet]]></category>
		<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Chart of Accounts]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3028</guid>
		<description><![CDATA[The two methods for recording prepaid expenses have to do with the general ledger account that is initially debited at the time of the cash payment. The two methods or approaches are: 1. debit an asset account (such as Prepaid Insurance) which is the balance sheet method, or 2. debit an expense account (such as [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/methods-recording-prepaid-expenses/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>In bookkeeping, why are revenues credits?</title>
		<link>http://blog.accountingcoach.com/in-bookkeeping-why-are-revenues-credits/</link>
		<comments>http://blog.accountingcoach.com/in-bookkeeping-why-are-revenues-credits/#comments</comments>
		<pubDate>Mon, 19 Sep 2011 12:23:12 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Equation]]></category>
		<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Chart of Accounts]]></category>
		<category><![CDATA[Debits and Credits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3025</guid>
		<description><![CDATA[In bookkeeping, revenues are credits because revenues cause owner&#8217;s equity or stockholders&#8217; equity to increase. Recall that the accounting equation, Assets = Liabilities + Owner&#8217;s Equity, must always be in balance. The asset accounts are expected to have debit balances, while the liability and owner&#8217;s equity accounts are expected to have credit balances. Therefore, when [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/in-bookkeeping-why-are-revenues-credits/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a purchase allowance?</title>
		<link>http://blog.accountingcoach.com/what-is-a-purchase-allowance/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-purchase-allowance/#comments</comments>
		<pubDate>Sat, 17 Sep 2011 13:39:42 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Chart of Accounts]]></category>
		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3022</guid>
		<description><![CDATA[A purchase allowance is a reduction in the buyer&#8217;s cost of merchandise that it had purchased. The purchase allowance is granted by the supplier because of a problem such as shipping the wrong items, the incorrect quantity, flaws in the goods, etc. In the case of a purchase allowance, the buyer does not return the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-purchase-allowance/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a purchase return?</title>
		<link>http://blog.accountingcoach.com/what-is-a-purchase-return/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-purchase-return/#comments</comments>
		<pubDate>Fri, 16 Sep 2011 12:28:14 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Chart of Accounts]]></category>
		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3015</guid>
		<description><![CDATA[A purchase return occurs when a buyer returns merchandise that it has purchased from a supplier. Under the periodic inventory system, the cost of the merchandise that was returned is recorded as 1) a credit to the general ledger account Purchase Returns or the account Purchase Returns and Allowances, and 2) a debit to Accounts [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-purchase-return/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a purchase discount?</title>
		<link>http://blog.accountingcoach.com/what-is-a-purchase-discount/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-purchase-discount/#comments</comments>
		<pubDate>Thu, 15 Sep 2011 20:34:34 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Chart of Accounts]]></category>
		<category><![CDATA[Debits and Credits]]></category>
		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3009</guid>
		<description><![CDATA[A purchase discount is a deduction that may be available to a buyer if the buyer pays an invoice within a prescribed time. For example, a supplier&#8217;s invoice for $10,000 with the credit terms 2/10 net 30 indicates that the buyer will be allowed a purchase discount of $200 (2% of $10,000) if the buyer [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-purchase-discount/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is cash flow net of tax?</title>
		<link>http://blog.accountingcoach.com/cash-flow-net-of-tax/</link>
		<comments>http://blog.accountingcoach.com/cash-flow-net-of-tax/#comments</comments>
		<pubDate>Fri, 09 Sep 2011 15:24:35 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Business Investments]]></category>
		<category><![CDATA[Calculations]]></category>
		<category><![CDATA[Improving Profits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3004</guid>
		<description><![CDATA[I view cash flow net of tax as the amount of cash spent minus the income tax savings when the amount is deductible on the corporation&#8217;s income tax return. To illustrate this, let&#8217;s assume that a U.S. corporation pays a combined federal and state income tax rate of 40% on its last increment of income. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/cash-flow-net-of-tax/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>How do I start a petty cash fund?</title>
		<link>http://blog.accountingcoach.com/start-petty-cash-fund/</link>
		<comments>http://blog.accountingcoach.com/start-petty-cash-fund/#comments</comments>
		<pubDate>Mon, 29 Aug 2011 13:48:29 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Balance Sheet]]></category>
		<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Chart of Accounts]]></category>
		<category><![CDATA[Debits and Credits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=2999</guid>
		<description><![CDATA[To start a petty cash fund you need to open a general ledger account entitled Petty Cash. This will be an additional cash account that you could report either separately or have its balance included with other cash accounts when preparing a balance sheet. Next you need to write a check for the amount that [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/start-petty-cash-fund/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Which date is used to record a credit card transaction?</title>
		<link>http://blog.accountingcoach.com/record-credit-card-transaction/</link>
		<comments>http://blog.accountingcoach.com/record-credit-card-transaction/#comments</comments>
		<pubDate>Fri, 26 Aug 2011 02:35:40 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=2986</guid>
		<description><![CDATA[When a business uses its credit card, the transaction date is the date the credit card is used, not the date that the credit card statement is paid. For example, if a business uses its credit card to purchase an asset on December 30, both the asset and the liability to the credit card company [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/record-credit-card-transaction/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is meant by the full cost of a product?</title>
		<link>http://blog.accountingcoach.com/full-cost-of-product/</link>
		<comments>http://blog.accountingcoach.com/full-cost-of-product/#comments</comments>
		<pubDate>Wed, 17 Aug 2011 11:27:17 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Manufacturing Overhead]]></category>
		<category><![CDATA[Nonmanufacturing Overhead]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=2989</guid>
		<description><![CDATA[Many (perhaps most) accountants use the term full cost to mean the full manufacturing or production cost of a product. To these accountants this means a product&#8217;s cost of materials, labor, and both variable and fixed manufacturing overhead. These accountants do not include selling, administrative, or interest costs in their definition of the full cost [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/full-cost-of-product/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What does a debit signify in bookkeeping?</title>
		<link>http://blog.accountingcoach.com/debit-in-bookkeeping/</link>
		<comments>http://blog.accountingcoach.com/debit-in-bookkeeping/#comments</comments>
		<pubDate>Fri, 12 Aug 2011 11:00:55 +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=2978</guid>
		<description><![CDATA[In bookkeeping, a debit can signify an increase in an asset, an expense, and the owner&#8217;s draws. A debit can also signify a decrease in a liability, revenues, and owner&#8217;s equity. A debit is one-half of bookkeeping&#8217;s double-entry system. The other half is a credit. A debit is also the amount entered on the left-side [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/debit-in-bookkeeping/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Isn&#8217;t objectivity violated when estimates are used in bookkeeping and accounting?</title>
		<link>http://blog.accountingcoach.com/objectivity-estimates-bookkeeping/</link>
		<comments>http://blog.accountingcoach.com/objectivity-estimates-bookkeeping/#comments</comments>
		<pubDate>Wed, 10 Aug 2011 11:00:28 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=2973</guid>
		<description><![CDATA[The use of estimates does not necessarily violate objectivity. If it is not possible to determine the exact amount of an expense and/or liability within a reasonable time, estimates may be necessary. In that situation, objectivity is met when the estimated amounts are similar to the amounts that another professionally-trained person would also compute with [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/objectivity-estimates-bookkeeping/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Are estimates allowed in bookkeeping?</title>
		<link>http://blog.accountingcoach.com/estimates-in-bookkeeping/</link>
		<comments>http://blog.accountingcoach.com/estimates-in-bookkeeping/#comments</comments>
		<pubDate>Mon, 08 Aug 2011 16:34:40 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Basics]]></category>
		<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Adjusting Entries]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=2967</guid>
		<description><![CDATA[While bookkeeping involves mostly precise amounts from sales and purchase invoices, cash receipts and checks written, etc. there are situations when estimates need to be entered. This is especially true when monthly financial statements are prepared under the accrual method of accounting. For instance, the monthly bookkeeping entries for depreciation, property taxes, utilities, fringe benefits [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/estimates-in-bookkeeping/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the difference between a bookkeeper and an accounting clerk?</title>
		<link>http://blog.accountingcoach.com/difference-bookkeeper-accounting-clerk/</link>
		<comments>http://blog.accountingcoach.com/difference-bookkeeper-accounting-clerk/#comments</comments>
		<pubDate>Sat, 06 Aug 2011 18:18:30 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Careers]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=2962</guid>
		<description><![CDATA[I envision a bookkeeper as a person employed by a smaller company and being responsible for recording nearly all of its transactions. Hence, the bookkeeper would likely process sales invoices, customers&#8217; remittances, purchases, payments to vendors, payroll, monitoring receivables, preparing journal entries, and more. I view an accounting clerk as a person employed by a [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/difference-bookkeeper-accounting-clerk/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is double-entry bookkeeping?</title>
		<link>http://blog.accountingcoach.com/what-is-double-entry-bookkeeping/</link>
		<comments>http://blog.accountingcoach.com/what-is-double-entry-bookkeeping/#comments</comments>
		<pubDate>Thu, 28 Jul 2011 15:10:56 +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=2952</guid>
		<description><![CDATA[Double-entry bookkeeping refers to the 500-year-old system in which each financial transaction of a company is recorded with an entry into at least two of its general ledger accounts. For example, if a company borrows $10,000 from its bank, the company&#8217;s asset account Cash is increased with a debit entry of $10,000 and the company&#8217;s [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-double-entry-bookkeeping/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
	</channel>
</rss>

