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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>Mon, 08 Feb 2010 19:08:15 +0000</pubDate>
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			<item>
		<title>What is the difference between actual overhead and applied overhead?</title>
		<link>http://blog.accountingcoach.com/dfifference-actual-overhead-applied-overhead/</link>
		<comments>http://blog.accountingcoach.com/dfifference-actual-overhead-applied-overhead/#comments</comments>
		<pubDate>Mon, 08 Feb 2010 19:08:15 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Manufacturing Overhead]]></category>

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

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=2011</guid>
		<description><![CDATA[In accounting, overhead usually refers to the indirect manufacturing costs. These are the manufacturing costs other than direct materials and direct labor.
The actual overhead refers to the indirect manufacturing costs actually occurring and recorded. These include the manufacturing costs of electricity, gas, water, rent, property tax, production supervisors, depreciation, repairs, maintenance, and more.
The applied overhead [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/dfifference-actual-overhead-applied-overhead/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Is there a difference between an expense and an expenditure?</title>
		<link>http://blog.accountingcoach.com/difference-expense-expenditure/</link>
		<comments>http://blog.accountingcoach.com/difference-expense-expenditure/#comments</comments>
		<pubDate>Thu, 04 Feb 2010 15:25:22 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Basics]]></category>

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

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

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=2005</guid>
		<description><![CDATA[An expense is reported on the income statement. An expense is a cost that has expired, was used up, or was necessary in order to earn the revenues during the time period indicated in the heading of the income statement. For example, the cost of the goods that were sold during the period are considered [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/difference-expense-expenditure/feed/</wfw:commentRss>
		</item>
		<item>
		<title>If we dispose of an asset, will there be a change in the owner&#8217;s equity?</title>
		<link>http://blog.accountingcoach.com/dispose-asset-owner-equity/</link>
		<comments>http://blog.accountingcoach.com/dispose-asset-owner-equity/#comments</comments>
		<pubDate>Mon, 01 Feb 2010 16:34:27 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Balance Sheet]]></category>

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

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

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1997</guid>
		<description><![CDATA[The owner&#8217;s equity of a sole proprietorship will change only if the disposal of an asset causes a gain or loss to be reported on the income statement.
To illustrate this, let&#8217;s assume that a truck that was used in the business is sold for $5,000. If the truck had a cost of $40,000 and accumulated [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/dispose-asset-owner-equity/feed/</wfw:commentRss>
		</item>
		<item>
		<title>How do you record the interest that is unpaid on a note payable?</title>
		<link>http://blog.accountingcoach.com/interest-unpaid-note-payable/</link>
		<comments>http://blog.accountingcoach.com/interest-unpaid-note-payable/#comments</comments>
		<pubDate>Fri, 29 Jan 2010 13:36:02 +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=1993</guid>
		<description><![CDATA[Interest that has occurred, but has not been paid as of a balance sheet date, is referred to as accrued interest. Under the accrual basis of accounting, the amount that has occurred but is unpaid should be recorded with a debit to Interest Expense and a credit to the current liability Interest Payable.
To illustrate, let&#8217;s [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/interest-unpaid-note-payable/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What to do with the balance in Allowance for Doubtful Accounts?</title>
		<link>http://blog.accountingcoach.com/balance-allowance-doubtful-accounts/</link>
		<comments>http://blog.accountingcoach.com/balance-allowance-doubtful-accounts/#comments</comments>
		<pubDate>Wed, 27 Jan 2010 15:37:51 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounts Receivable and Bad Debt Expense]]></category>

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

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

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1989</guid>
		<description><![CDATA[You need to adjust the balance in the contra asset account Allowance for Doubtful Accounts to be your best estimate of the amount in Accounts Receivable which are not collectible. In other words, adjust the credit balance in the allowance account to become the amount of the receivables that is not expected to turn to [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/balance-allowance-doubtful-accounts/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is a credit?</title>
		<link>http://blog.accountingcoach.com/what-is-a-credit-2/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-credit-2/#comments</comments>
		<pubDate>Mon, 25 Jan 2010 14:09:36 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Basics]]></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=1983</guid>
		<description><![CDATA[In accounting there are several meanings of a credit.
In the context of debits and credits, a credit is an entry made on the right side of an account. For example, accountants will state that a payment on a company&#8217;s outstanding bills will be recorded with a credit to Cash and a debit to Accounts Payable. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-credit-2/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Is the deposit for a booth at a future trade show an asset?</title>
		<link>http://blog.accountingcoach.com/deposit-for-future-trade-show/</link>
		<comments>http://blog.accountingcoach.com/deposit-for-future-trade-show/#comments</comments>
		<pubDate>Fri, 22 Jan 2010 21:54:37 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Principles]]></category>

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

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

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1976</guid>
		<description><![CDATA[The deposit for a booth at a future trade show is an asset until the trade show occurs.
Once the trade show occurs the deposit amount should be moved from the balance sheet asset account to an income statement expense account.
Learn more about Accounting Principles.
Related QuestionsIs a security deposit for a rental agreement recorded in a [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/deposit-for-future-trade-show/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What does a balance sheet tell us?</title>
		<link>http://blog.accountingcoach.com/balance-sheets/</link>
		<comments>http://blog.accountingcoach.com/balance-sheets/#comments</comments>
		<pubDate>Wed, 20 Jan 2010 23:04:33 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Basics]]></category>

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

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

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1971</guid>
		<description><![CDATA[A balance sheet reports the dollar amounts of a company&#8217;s assets, liabilities, and  owner&#8217;s equity (or stockholders&#8217; equity) as of a previous date.
Assets include cash, accounts receivable, inventory, investments, land, buildings, equipment, some intangible assets, and others. Generally assets are reported at their cost or a lower amount due to depreciation, the cost principle, and [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/balance-sheets/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Is the reversal of a previous year&#8217;s accrued expense permanent?</title>
		<link>http://blog.accountingcoach.com/reversing-accrued-expense/</link>
		<comments>http://blog.accountingcoach.com/reversing-accrued-expense/#comments</comments>
		<pubDate>Tue, 19 Jan 2010 00:10:02 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Adjusting Entries]]></category>

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

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1965</guid>
		<description><![CDATA[Yes, a reversing entry is permanent.
To illustrate, let&#8217;s assume that a company had accrued interest expense of $10,000 as of December 31, the end of its accounting year. The accrual adjusting entry will record an additional $10,000 of expense to be reported on the December income statement and an additional $10,000 liability on the December [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/reversing-accrued-expense/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What will cause a change in net working capital?</title>
		<link>http://blog.accountingcoach.com/change-in-working-capital/</link>
		<comments>http://blog.accountingcoach.com/change-in-working-capital/#comments</comments>
		<pubDate>Fri, 15 Jan 2010 16:10:04 +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=1958</guid>
		<description><![CDATA[Net working capital or working capital is defined as current assets minus current liabilities. Therefore, a change in the total amount of current assets without a change of the same amount in current liabilities will result in a change in the amount of working capital. Similarly, a change in the total amount of current liabilities [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/change-in-working-capital/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What are the advantages of departmentalizing manufacturing overhead costs?</title>
		<link>http://blog.accountingcoach.com/departmental-overhead-costs-rates/</link>
		<comments>http://blog.accountingcoach.com/departmental-overhead-costs-rates/#comments</comments>
		<pubDate>Wed, 13 Jan 2010 14:39:30 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Manufacturing Overhead]]></category>

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

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1952</guid>
		<description><![CDATA[The departmentalizing of manufacturing overhead costs allows for better planning and control if the head of each department is held responsible for the costs and productivity of his or her department.
The departmentalizing of manufacturing overhead costs also allows for the computation and application of several departmental overhead cost rates instead of having a single, plant-wide [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/departmental-overhead-costs-rates/feed/</wfw:commentRss>
		</item>
		<item>
		<title>At what point are revenues considered to be earned?</title>
		<link>http://blog.accountingcoach.com/revenues-earned/</link>
		<comments>http://blog.accountingcoach.com/revenues-earned/#comments</comments>
		<pubDate>Mon, 11 Jan 2010 15:46:43 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Basics]]></category>

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

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

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1946</guid>
		<description><![CDATA[Revenues, which are derived from an entity&#8217;s main activities such as the sale of merchandise or the performance of service, are considered to be earned when the earning process has been substantially completed.
For example, a merchandiser&#8217;s sales revenues are considered earned when the goods have been shipped or delivered to the customers and the merchandiser [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/revenues-earned/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is an escrow payment?</title>
		<link>http://blog.accountingcoach.com/what-is-an-escrow-payment/</link>
		<comments>http://blog.accountingcoach.com/what-is-an-escrow-payment/#comments</comments>
		<pubDate>Fri, 08 Jan 2010 14:24:57 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Balance Sheet]]></category>

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

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1938</guid>
		<description><![CDATA[An escrow payment is an amount deposited with another party and it is to be released only for its specified purpose.  The following is one example of an escrow payment.
A borrower and lender arrange for the borrower&#8217;s monthly mortgage payment to include an amount equal to one-twelfth of the property&#8217;s annual real estate tax. Assuming [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-an-escrow-payment/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Can a fully depreciated asset be revalued?</title>
		<link>http://blog.accountingcoach.com/fully-depreciated-asset/</link>
		<comments>http://blog.accountingcoach.com/fully-depreciated-asset/#comments</comments>
		<pubDate>Wed, 06 Jan 2010 16:25:54 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Accounting Basics]]></category>

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

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

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

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

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1929</guid>
		<description><![CDATA[No. A fully depreciated asset cannot be revalued because of accounting&#8217;s cost principle, matching principle, and going concern assumption.
For instance, let&#8217;s assume that a company purchased a building 30 years ago at a cost of $600,000. The company then depreciated the building at a rate of $20,000 per year for 30 years. Today the building [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/fully-depreciated-asset/feed/</wfw:commentRss>
		</item>
		<item>
		<title>What is IRS mileage rate for use of a car for business?</title>
		<link>http://blog.accountingcoach.com/irs-business-mileage-rate/</link>
		<comments>http://blog.accountingcoach.com/irs-business-mileage-rate/#comments</comments>
		<pubDate>Mon, 04 Jan 2010 14:15:15 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1924</guid>
		<description><![CDATA[The standard rate allowed by the Internal Revenue Service for the business use of an automobile in the year 2010 is 50 cents per mile. (This is lower than the rate allowed in the year 2009.) In addition to the standard rate of 50 cents per mile, you are also allowed to claim an expense [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/irs-business-mileage-rate/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Next Q&#038;A in January 2010. Search our existing Q&#038;A.</title>
		<link>http://blog.accountingcoach.com/accounting-qa-search-box-next-qa-in-january-2010/</link>
		<comments>http://blog.accountingcoach.com/accounting-qa-search-box-next-qa-in-january-2010/#comments</comments>
		<pubDate>Tue, 01 Dec 2009 14:31:19 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1912</guid>
		<description><![CDATA[We will resume posting questions and answers in January 2010.
By using the search box to the right, you can search over 500 questions that have already been answered on our blog.
You can also search our entire website by using the search box located at the top right of every page.
Thank you for using AccountingCoach.com.
Related QuestionsWhat [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/accounting-qa-search-box-next-qa-in-january-2010/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Why are accruals needed every month?</title>
		<link>http://blog.accountingcoach.com/accruals-needed-monthly/</link>
		<comments>http://blog.accountingcoach.com/accruals-needed-monthly/#comments</comments>
		<pubDate>Wed, 25 Nov 2009 10:23:47 +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=1888</guid>
		<description><![CDATA[Accrual adjusting entries are needed monthly only if a company issues monthly financial statements. Two reasons for the monthly accrual adjusting entries are:
1. To report the revenues and receivables which were earned during the month, but the transactions had not been recorded in the accounts as of the end of the month, and
2. To record [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/accruals-needed-monthly/feed/</wfw:commentRss>
		</item>
		<item>
		<title>Is the current portion of long term debt adjusted monthly?</title>
		<link>http://blog.accountingcoach.com/current-portion-long-term-debt/</link>
		<comments>http://blog.accountingcoach.com/current-portion-long-term-debt/#comments</comments>
		<pubDate>Mon, 23 Nov 2009 10:09:41 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
		
		<category><![CDATA[Balance Sheet]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=1884</guid>
		<description><![CDATA[A monthly adjustment to the current portion of long term debt is necessary when:
1. the company issues monthly balance sheets, and
2. the amount to be paid on a loan&#8217;s principal balance during the next 12 months is different from the amount presently shown as a current liability.
The amount reported as a current liability plus the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/current-portion-long-term-debt/feed/</wfw:commentRss>
		</item>
		<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?Is the reversal of a previous year&#8217;s accrued expense permanent?How do you record the interest that is [...]]]></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>
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		<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>
	</channel>
</rss>
