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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 carriage inwards?</title>
		<link>http://blog.accountingcoach.com/what-is-carriage-inwards/</link>
		<comments>http://blog.accountingcoach.com/what-is-carriage-inwards/#comments</comments>
		<pubDate>Wed, 22 May 2013 13:14:18 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4166</guid>
		<description><![CDATA[Carriage inwards refers to the transportation costs associated with the purchase of merchandise or other assets. The buyer is responsible for the cost of carriage inwards when it buys items and the prices are stated as being FOB shipping point. Carriage inwards is also known as freight-in or transportation-in. When goods or merchandise are purchased [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-carriage-inwards/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What are the limitations of the balance sheet?</title>
		<link>http://blog.accountingcoach.com/what-are-the-limitations-of-the-balance-sheet/</link>
		<comments>http://blog.accountingcoach.com/what-are-the-limitations-of-the-balance-sheet/#comments</comments>
		<pubDate>Thu, 16 May 2013 13:19:54 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Balance Sheet]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4158</guid>
		<description><![CDATA[One limitation of the balance sheet is that only the assets acquired in transactions can be included. Therefore, some of a company&#8217;s most valuable assets will not be reported on the balance sheet. For example, assume that a company developed an internet business that now attracts millions of visitors each day and has $10 million [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-are-the-limitations-of-the-balance-sheet/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What does drop ship mean?</title>
		<link>http://blog.accountingcoach.com/what-does-drop-ship-mean/</link>
		<comments>http://blog.accountingcoach.com/what-does-drop-ship-mean/#comments</comments>
		<pubDate>Wed, 15 May 2013 14:55:45 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounts Payable]]></category>
		<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4151</guid>
		<description><![CDATA[One example of drop ship is a manufacturer shipping goods directly to one of its customers&#8217; customer (instead of delivering the goods to the customer that placed the order with the manufacturer). The following illustrates the concept of drop ship, drop shipping or a drop shipment. Assume that XYZ Distributors Inc (XYZ) sells only the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-does-drop-ship-mean/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a blank endorsement?</title>
		<link>http://blog.accountingcoach.com/what-is-a-blank-endorsement/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-blank-endorsement/#comments</comments>
		<pubDate>Tue, 14 May 2013 12:50:36 +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=4146</guid>
		<description><![CDATA[In the case of a check payable to John Smith (the payee), a blank endorsement would be the signature of John Smith on the back side of the check without any other words above or below his signature. A blank endorsement is considered to be risky because the endorser is not restricting the check (or [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-blank-endorsement/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a blank check?</title>
		<link>http://blog.accountingcoach.com/what-is-a-blank-check/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-blank-check/#comments</comments>
		<pubDate>Thu, 09 May 2013 15:07:43 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounts Payable]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4140</guid>
		<description><![CDATA[A blank check often refers to a check that has been signed by an authorized check signer before the other information (date, payee, amount) has been entered on the check. For instance, a small business owner may sign three blank checks before leaving for a seven day vacation. Basically the owner is trusting that the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-blank-check/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the aging method?</title>
		<link>http://blog.accountingcoach.com/what-is-the-aging-method/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-aging-method/#comments</comments>
		<pubDate>Tue, 07 May 2013 14:58:42 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounts Receivable and Bad Debt Expense]]></category>
		<category><![CDATA[Adjusting Entries]]></category>
		<category><![CDATA[Balance Sheet]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4132</guid>
		<description><![CDATA[The aging method usually refers to the technique used for determining the credit balance needed in the account Allowance for Doubtful (or Uncollectible) Accounts. This Allowance account is a contra asset account connected with Accounts Receivable. Usually when a credit adjustment is entered into the Allowance account, a corresponding debit amount is entered into Bad [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-aging-method/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a memorandum entry?</title>
		<link>http://blog.accountingcoach.com/what-is-a-memorandum-entry/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-memorandum-entry/#comments</comments>
		<pubDate>Tue, 30 Apr 2013 20:07:41 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Debits and Credits]]></category>
		<category><![CDATA[Stockholders' Equity]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4127</guid>
		<description><![CDATA[A memorandum entry is a short message entered into the general journal and also entered into a general ledger account. It is not a complete journal entry because it does not contain debit and credit amounts. An example of a memorandum entry might be the following: &#8220;On May 1, 2013 a 2-for-1 stock split was [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-memorandum-entry/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What does stepped cost mean?</title>
		<link>http://blog.accountingcoach.com/what-does-stepped-cost-mean/</link>
		<comments>http://blog.accountingcoach.com/what-does-stepped-cost-mean/#comments</comments>
		<pubDate>Thu, 25 Apr 2013 13:00:29 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Break-even Point]]></category>
		<category><![CDATA[Cost and Managerial Accounting]]></category>
		<category><![CDATA[Improving Profits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4117</guid>
		<description><![CDATA[Stepped cost refers to the behavior of the total cost of an activity at various levels of the activity. When a stepped cost is plotted on a graph (with the total cost represented by the y-axis and the quantity of the activity represented by the x-axis) the lines will appear as steps or stairs rising [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-does-stepped-cost-mean/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Why will some asset accounts have a credit balance?</title>
		<link>http://blog.accountingcoach.com/why-will-some-asset-accounts-have-a-credit-balance/</link>
		<comments>http://blog.accountingcoach.com/why-will-some-asset-accounts-have-a-credit-balance/#comments</comments>
		<pubDate>Tue, 23 Apr 2013 22:11:16 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Balance Sheet]]></category>
		<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Debits and Credits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4105</guid>
		<description><![CDATA[A few asset accounts intentionally have credit balances. For instance, the account Accumulated Depreciation (which is a plant asset account) will have a credit balance since it is credited for the amounts that are debited to Depreciation Expense. The account Allowance for Bad Debts will have a credit balance for the amounts in Accounts Receivable [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/why-will-some-asset-accounts-have-a-credit-balance/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What does per annum mean?</title>
		<link>http://blog.accountingcoach.com/what-does-per-annum-mean/</link>
		<comments>http://blog.accountingcoach.com/what-does-per-annum-mean/#comments</comments>
		<pubDate>Thu, 18 Apr 2013 18:19:41 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounts Payable]]></category>
		<category><![CDATA[Accounts Receivable and Bad Debt Expense]]></category>
		<category><![CDATA[Calculations]]></category>
		<category><![CDATA[Future Value of Single Amount]]></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=4101</guid>
		<description><![CDATA[Per annum means yearly or annually. For example, if a business charges its customers 1.5% per month on any unpaid balance, the per annum rate is 18%. The per annum rate was the result of 1.5% X 12 months in a year. When a supplier offers a credit customer an early-payment discount of 2% for [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-does-per-annum-mean/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a recurring journal entry?</title>
		<link>http://blog.accountingcoach.com/what-is-a-recurring-journal-entry/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-recurring-journal-entry/#comments</comments>
		<pubDate>Tue, 16 Apr 2013 15:34:05 +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=4094</guid>
		<description><![CDATA[A recurring journal entry is a journal entry that is recorded in every accounting period. For example, a company issuing monthly financial statements might record depreciation by debiting Depreciation Expense for $3,000 and crediting Accumulated Depreciation for $3,000 each and every month. If the accounts and the amounts are identical each month, the recurring journal [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-recurring-journal-entry/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the monthly close?</title>
		<link>http://blog.accountingcoach.com/what-is-the-monthly-close/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-monthly-close/#comments</comments>
		<pubDate>Thu, 11 Apr 2013 17:26:22 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounts Payable]]></category>
		<category><![CDATA[Adjusting Entries]]></category>
		<category><![CDATA[Balance Sheet]]></category>
		<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Income Statement]]></category>
		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4088</guid>
		<description><![CDATA[In accounting the monthly close is the processing of transactions, journal entries and financial statements at the end of each month. Under the accrual method of accounting, it is imperative that the financial statements reflect only the transactions and journal entries having relevance to the current month&#8217;s revenues and expenses, and end-of-the-month assets and liabilities. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-monthly-close/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What do negative variances indicate?</title>
		<link>http://blog.accountingcoach.com/what-do-negative-variances-indicate/</link>
		<comments>http://blog.accountingcoach.com/what-do-negative-variances-indicate/#comments</comments>
		<pubDate>Tue, 09 Apr 2013 15:27:19 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Calculations]]></category>
		<category><![CDATA[Cost and Managerial Accounting]]></category>
		<category><![CDATA[Standard Costing]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4079</guid>
		<description><![CDATA[Accountants often use negative amounts to indicate an unfavorable variance. For instance, if actual revenues are less than the budgeted revenues, the variance (or difference) will be shown as a negative amount. The reason is that having less revenues than planned is not good. On the other hand, if actual expenses are less than the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-do-negative-variances-indicate/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is meant by nonoperating expenses and losses?</title>
		<link>http://blog.accountingcoach.com/what-is-meant-by-nonoperating-expenses-and-losses/</link>
		<comments>http://blog.accountingcoach.com/what-is-meant-by-nonoperating-expenses-and-losses/#comments</comments>
		<pubDate>Wed, 27 Mar 2013 13:00:36 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Income Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4074</guid>
		<description><![CDATA[Nonoperating expenses are the expenses incurred by a business which are outside of its main or central operations. Nonoperating expenses are also described as incidental or peripheral. A common example is a retailer&#8217;s interest expense. The retailer&#8217;s main operations are purchasing and selling merchandise. Borrowing money is outside of its main or central operations. Losses [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-meant-by-nonoperating-expenses-and-losses/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is meant by nonoperating revenues and gains?</title>
		<link>http://blog.accountingcoach.com/what-is-meant-by-nonoperating-revenues-and-gains/</link>
		<comments>http://blog.accountingcoach.com/what-is-meant-by-nonoperating-revenues-and-gains/#comments</comments>
		<pubDate>Tue, 26 Mar 2013 17:37:37 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Income Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4069</guid>
		<description><![CDATA[Nonoperating revenues are the amounts earned by a business which are outside of its main or central operations. Nonoperating revenues are also described as incidental or peripheral. A common example is a retailer&#8217;s investment income or interest income. The retailer&#8217;s main operations are purchasing and selling merchandise. Investing its idle cash in interest-bearing investments is [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-meant-by-nonoperating-revenues-and-gains/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Are the goods purchased by a retailer an expense or an asset?</title>
		<link>http://blog.accountingcoach.com/are-the-goods-purchased-by-a-retailer-an-expense-or-an-asset/</link>
		<comments>http://blog.accountingcoach.com/are-the-goods-purchased-by-a-retailer-an-expense-or-an-asset/#comments</comments>
		<pubDate>Wed, 20 Mar 2013 13:42:54 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Adjusting Entries]]></category>
		<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=4065</guid>
		<description><![CDATA[Some retailers view the goods purchased as part of the expense known as the cost of goods sold. Other retailers view the goods purchased as part of the asset inventory. To appreciate both views, let&#8217;s assume that a retailer begins the year with inventory having a cost of $800. It ends the year with inventory [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/are-the-goods-purchased-by-a-retailer-an-expense-or-an-asset/feed/</wfw:commentRss>
		<slash:comments>7</slash:comments>
		</item>
		<item>
		<title>How do you write off a bad account?</title>
		<link>http://blog.accountingcoach.com/how-do-you-write-off-a-bad-account/</link>
		<comments>http://blog.accountingcoach.com/how-do-you-write-off-a-bad-account/#comments</comments>
		<pubDate>Mon, 18 Mar 2013 13:00:55 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Accounts Receivable and Bad Debt Expense]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4055</guid>
		<description><![CDATA[There are two ways to write off a bad account receivable. One is the direct write-off method and the other occurs under the allowance method. Under the direct write-off method a company writes off a bad account receivable after the specific account is found to be uncollectible. This write off usually occurs many months after [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/how-do-you-write-off-a-bad-account/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Why are some expenses deferred?</title>
		<link>http://blog.accountingcoach.com/why-are-some-expenses-deferred/</link>
		<comments>http://blog.accountingcoach.com/why-are-some-expenses-deferred/#comments</comments>
		<pubDate>Fri, 15 Mar 2013 14:13:47 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Adjusting Entries]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4048</guid>
		<description><![CDATA[Generally, expenses are deferred in order to comply with the accounting guideline known as the matching principle. To illustrate the concept, let&#8217;s assume that a company pays $3,000 on December 30 to rent a warehouse for the upcoming three-month period of January 1 through March 31. Since none of the $3,000 expires or is used [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/why-are-some-expenses-deferred/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>When do you adjust the amount of prepaid expenses?</title>
		<link>http://blog.accountingcoach.com/when-do-you-adjust-the-amount-of-prepaid-expenses/</link>
		<comments>http://blog.accountingcoach.com/when-do-you-adjust-the-amount-of-prepaid-expenses/#comments</comments>
		<pubDate>Wed, 13 Mar 2013 15:36:25 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Adjusting Entries]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4041</guid>
		<description><![CDATA[The balance in the current asset account Prepaid Expenses should be adjusted prior to issuing a company&#8217;s financial statements. If the company issues financial statements for each calendar month, you will need to adjust the balance in Prepaid Expenses as of the end of each month. If your company issues only quarterly financial statements, you [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/when-do-you-adjust-the-amount-of-prepaid-expenses/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What are prepaid expenses?</title>
		<link>http://blog.accountingcoach.com/what-are-prepaid-expenses/</link>
		<comments>http://blog.accountingcoach.com/what-are-prepaid-expenses/#comments</comments>
		<pubDate>Mon, 11 Mar 2013 17:38:37 +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=4035</guid>
		<description><![CDATA[Prepaid expenses are future expenses that have been paid in advance. You can think of prepaid expenses as costs that have been paid but have not yet been used up or have not yet expired. The amount of prepaid expenses that have not yet expired are reported on a company&#8217;s balance sheet as an asset. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-are-prepaid-expenses/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is work-in-process inventory?</title>
		<link>http://blog.accountingcoach.com/what-is-work-in-process-inventory/</link>
		<comments>http://blog.accountingcoach.com/what-is-work-in-process-inventory/#comments</comments>
		<pubDate>Wed, 27 Feb 2013 13:10:21 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Cost and Managerial Accounting]]></category>
		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4031</guid>
		<description><![CDATA[You can think of work-in-process (WIP) inventory as the goods that are on the factory floor. The manufacturing of these goods has begun but has not yet been completed. You can also think of work-in-process inventory as the general ledger current asset account that reports the cost of the goods that are on the factory [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-work-in-process-inventory/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is public accounting?</title>
		<link>http://blog.accountingcoach.com/what-is-public-accounting/</link>
		<comments>http://blog.accountingcoach.com/what-is-public-accounting/#comments</comments>
		<pubDate>Mon, 25 Feb 2013 20:29:16 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Careers]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=4026</guid>
		<description><![CDATA[Public accounting can be viewed as firms of accountants that serve clients such as businesses (retailers, manufacturers, service companies, etc.), individuals, nonprofits and governments. The services provided by public accounting firms will vary by the size and the expertise of the firm. Here are some of the public accounting services: - preparation, review, and auditing [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-public-accounting/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the full disclosure principle?</title>
		<link>http://blog.accountingcoach.com/what-is-the-full-disclosure-principle/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-full-disclosure-principle/#comments</comments>
		<pubDate>Thu, 21 Feb 2013 15:17:45 +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=4017</guid>
		<description><![CDATA[For a business, the full disclosure principle requires a company to provide the necessary information so that people who are accustomed to reading financial information can make informed decisions concerning the company. The required disclosures can be found in a number of places including the following: - the company&#8217;s financial statements including any supplementary schedules [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-full-disclosure-principle/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is an outstanding check?</title>
		<link>http://blog.accountingcoach.com/what-is-an-outstanding-check/</link>
		<comments>http://blog.accountingcoach.com/what-is-an-outstanding-check/#comments</comments>
		<pubDate>Mon, 18 Feb 2013 13:33:36 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bank Reconciliation]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3998</guid>
		<description><![CDATA[An outstanding check is a check that has been written by a company (and deducted from the appropriate general ledger cash account) but it has not yet cleared the bank account on which it is drawn. Hence, outstanding checks will mean that the balance in the bank account will be greater than the balance in [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-an-outstanding-check/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a contra account?</title>
		<link>http://blog.accountingcoach.com/what-is-a-contra-account/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-contra-account/#comments</comments>
		<pubDate>Wed, 13 Feb 2013 13:29:16 +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[Uncategorized]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3994</guid>
		<description><![CDATA[A contra account is a general ledger account which is intended to have its balance be the opposite of the normal balance for that account classification. For instance, a contra asset account is intended to have a credit balance instead of the debit balance normally found in an asset account. A contra revenue account is [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-contra-account/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is income smoothing?</title>
		<link>http://blog.accountingcoach.com/what-is-income-smoothing/</link>
		<comments>http://blog.accountingcoach.com/what-is-income-smoothing/#comments</comments>
		<pubDate>Tue, 12 Feb 2013 13:08:00 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Accounts Receivable and Bad Debt Expense]]></category>
		<category><![CDATA[Income Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3984</guid>
		<description><![CDATA[Income smoothing refers to reducing the fluctuations in a corporation&#8217;s earnings. Income smoothing can range from good business methods to fraudulent reporting. Some business practices are ethical and will result in income smoothing. For example, a corporation might have an employee bonus plan, a deferred profit sharing plan, and a charitable giving plan that will [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-income-smoothing/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is periodicity in accounting?</title>
		<link>http://blog.accountingcoach.com/what-is-periodicity-in-accounting/</link>
		<comments>http://blog.accountingcoach.com/what-is-periodicity-in-accounting/#comments</comments>
		<pubDate>Mon, 11 Feb 2013 14:20:42 +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=3976</guid>
		<description><![CDATA[In accounting, periodicity means that accountants will assume that a company&#8217;s complex and ongoing activities can be divided up and reported in annual, quarterly and monthly financial statements. For example, some earth-moving equipment may require two years to manufacture but the activities will be divided up and reported in quarterly financial statements. A similar situation [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-periodicity-in-accounting/feed/</wfw:commentRss>
		<slash:comments>2</slash:comments>
		</item>
		<item>
		<title>What is the cost principle?</title>
		<link>http://blog.accountingcoach.com/what-is-the-cost-principle/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-cost-principle/#comments</comments>
		<pubDate>Mon, 21 Jan 2013 15:30:48 +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>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3888</guid>
		<description><![CDATA[The cost principle is one of the basic underlying guidelines in accounting. It is also known as the historical cost principle. The cost principle requires that assets be recorded at the cash amount (or its equivalent) at the time that an asset is acquired. For example, if equipment is acquired for the cash amount of [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-cost-principle/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the matching principle?</title>
		<link>http://blog.accountingcoach.com/what-is-the-matching-principle/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-matching-principle/#comments</comments>
		<pubDate>Fri, 11 Jan 2013 12:57:33 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3878</guid>
		<description><![CDATA[The matching principle is one of the basic underlying guidelines in accounting. The matching principle directs a company to report an expense on its income statement in the same period as the related revenues. To illustrate the matching principle, let&#8217;s assume that all of a company&#8217;s sales are made through sales representatives (reps) who earn [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-matching-principle/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the self-employed person&#8217;s FICA tax rate for 2013?</title>
		<link>http://blog.accountingcoach.com/what-is-the-self-employed-persons-fica-tax-rate-for-2013/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-self-employed-persons-fica-tax-rate-for-2013/#comments</comments>
		<pubDate>Tue, 08 Jan 2013 12:28:29 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Payroll Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3864</guid>
		<description><![CDATA[The self-employed person&#8217;s FICA tax rate for 2013 is 15.3% on the first $113,700 of net income and then 2.9% on the net income that is in excess of $113,700. The self-employed person&#8217;s FICA tax rate for 2013 consists of the following: - the employee&#8217;s portion of the Social Security tax, which is 6.2% of [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-self-employed-persons-fica-tax-rate-for-2013/feed/</wfw:commentRss>
		<slash:comments>2</slash:comments>
		</item>
		<item>
		<title>What is the employer&#8217;s Social Security tax rate for 2013?</title>
		<link>http://blog.accountingcoach.com/what-is-the-employers-social-security-tax-rate-for-2013/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-employers-social-security-tax-rate-for-2013/#comments</comments>
		<pubDate>Mon, 07 Jan 2013 12:10:37 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Payroll Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3858</guid>
		<description><![CDATA[The employer&#8217;s Social Security tax rate for 2013 is 6.2% of each employee&#8217;s first $113,700 of wages, salaries, etc. The employer&#8217;s Social Security tax does not apply to any employee&#8217;s wages, salaries, etc. that are in excess of $113,700 during the year 2013. The employer&#8217;s Social Security tax is in addition to the employee&#8217;s Social [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-employers-social-security-tax-rate-for-2013/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the employee&#8217;s Social Security tax rate for 2013?</title>
		<link>http://blog.accountingcoach.com/what-is-the-employees-social-security-tax-rate-for-2013/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-employees-social-security-tax-rate-for-2013/#comments</comments>
		<pubDate>Sat, 05 Jan 2013 15:53:48 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Payroll Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3854</guid>
		<description><![CDATA[The employee&#8217;s Social Security tax rate for 2013 is 6.2% of the first $113,700 of wages, salaries, etc. An employee&#8217;s 2013 earnings in excess of $113,700 are not subject to the Social Security tax. (For the years 2012 and 2011, the employee&#8217;s Social Security tax rate was temporarily reduced to 4.2%. In those years the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-employees-social-security-tax-rate-for-2013/feed/</wfw:commentRss>
		<slash:comments>2</slash:comments>
		</item>
		<item>
		<title>What is the maximum amount of earnings subject to the Social Security tax in 2013?</title>
		<link>http://blog.accountingcoach.com/what-is-the-maximum-amount-of-earnings-subject-to-the-social-security-tax-in-2013/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-maximum-amount-of-earnings-subject-to-the-social-security-tax-in-2013/#comments</comments>
		<pubDate>Fri, 04 Jan 2013 15:57:10 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Payroll Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3850</guid>
		<description><![CDATA[The maximum amount of an employee&#8217;s 2013 earnings (and a self-employed person&#8217;s net income) that is subject to the Social Security tax is $113,700. This amount is also referred to as the Social Security annual limit, wage base, contribution and benefit base, ceiling, tax cap, and maximum taxable earnings. The maximum amount is adjusted annually [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-maximum-amount-of-earnings-subject-to-the-social-security-tax-in-2013/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the IRS mileage rate for use of a car for business in 2013?</title>
		<link>http://blog.accountingcoach.com/what-is-the-irs-mileage-rate-for-use-of-a-car-for-business-in-2013/</link>
		<comments>http://blog.accountingcoach.com/what-is-the-irs-mileage-rate-for-use-of-a-car-for-business-in-2013/#comments</comments>
		<pubDate>Wed, 02 Jan 2013 18:26:29 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3845</guid>
		<description><![CDATA[The optional standard rate allowed by the Internal Revenue Service for the business use of a car in the year 2013 is 56.5 cents per mile. (This is 1 cent higher than the rate allowed in the year 2012.) In addition to the 56.5 cents per mile, you are also allowed to claim an expense [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-the-irs-mileage-rate-for-use-of-a-car-for-business-in-2013/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is self-insurance?</title>
		<link>http://blog.accountingcoach.com/what-is-self-insurance/</link>
		<comments>http://blog.accountingcoach.com/what-is-self-insurance/#comments</comments>
		<pubDate>Thu, 29 Nov 2012 16:00:41 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3761</guid>
		<description><![CDATA[Self-insurance means no insurance. For example, if a retailer decides to self-insure its buildings, the retailer will not have an insurance policy to pay for losses that may occur to its buildings. If a person causes a loss to one of the retailer&#8217;s buildings, the retailer will have to bring a claim against that person. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-self-insurance/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Are the sales taxes part of a retailer&#8217;s sales?</title>
		<link>http://blog.accountingcoach.com/are-the-sales-taxes-collected-by-a-retailer-included-in-its-sales/</link>
		<comments>http://blog.accountingcoach.com/are-the-sales-taxes-collected-by-a-retailer-included-in-its-sales/#comments</comments>
		<pubDate>Tue, 27 Nov 2012 16:08:11 +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=3785</guid>
		<description><![CDATA[No. The sales taxes collected by a retailer are not part of its sales revenues. This means that the sales taxes collected by a retailer will not be reported on its income statement. Rather, the sales taxes collected are reported on the balance sheet as a current liability until they are remitted to the government. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/are-the-sales-taxes-collected-by-a-retailer-included-in-its-sales/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>What is prepaid insurance?</title>
		<link>http://blog.accountingcoach.com/what-is-prepaid-insurance/</link>
		<comments>http://blog.accountingcoach.com/what-is-prepaid-insurance/#comments</comments>
		<pubDate>Tue, 20 Nov 2012 13:00:27 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Principles]]></category>
		<category><![CDATA[Adjusting Entries]]></category>
		<category><![CDATA[Balance Sheet]]></category>
		<category><![CDATA[Debits and Credits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3780</guid>
		<description><![CDATA[Prepaid insurance is the portion of an insurance premium that has been paid in advance and has not expired as of the date of the balance sheet. This unexpired cost is reported in the current asset account Prepaid Insurance. As the amount of prepaid insurance expires, the expired cost is moved from the asset account [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-prepaid-insurance/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>What is a trade discount?</title>
		<link>http://blog.accountingcoach.com/what-is-a-trade-discount/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-trade-discount/#comments</comments>
		<pubDate>Thu, 15 Nov 2012 16:40:25 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounts Payable]]></category>
		<category><![CDATA[Accounts Receivable and Bad Debt Expense]]></category>
		<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Income Statement]]></category>
		<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3776</guid>
		<description><![CDATA[A trade discount is a reduction to the published price of a product. For example, a high-volume wholesaler might be entitled to a 40% trade discount, while a medium-volume wholesaler is given a 30% trade discount. A retail customer will receive no trade discount and will have to pay the published or list price. The [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-trade-discount/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is float?</title>
		<link>http://blog.accountingcoach.com/what-is-float/</link>
		<comments>http://blog.accountingcoach.com/what-is-float/#comments</comments>
		<pubDate>Tue, 13 Nov 2012 13:00:30 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bank Reconciliation]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3766</guid>
		<description><![CDATA[In accounting and bookkeeping, float is the time between the writing of a check and the time that the check clears the bank account on which it is drawn. For example, Payer Corporation writes a check for $5,000 and mails it to a supplier on Wednesday. However, the check will not clear Payer Corporation&#8217;s checking [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-float/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>What is a noncash expense?</title>
		<link>http://blog.accountingcoach.com/what-is-a-noncash-expense/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-noncash-expense/#comments</comments>
		<pubDate>Thu, 08 Nov 2012 13:00:47 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Adjusting Entries]]></category>
		<category><![CDATA[Cash Flow Statement]]></category>
		<category><![CDATA[Depreciation]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3756</guid>
		<description><![CDATA[A noncash expense is an expense that is reported on the income statement of the current accounting period, but there was no related cash payment during the period. A common example of a noncash expense is depreciation. For instance, if a company purchased equipment on December 31, 2012 for $200,000 cash, it could have Depreciation [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-noncash-expense/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
	</channel>
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