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	<title>AccountingCoach.com Q&#38;A</title>
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	<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 meant by accounts written off?</title>
		<link>http://blog.accountingcoach.com/what-is-accounts-written-off/</link>
		<comments>http://blog.accountingcoach.com/what-is-accounts-written-off/#comments</comments>
		<pubDate>Tue, 15 May 2012 22:27:30 +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=3444</guid>
		<description><![CDATA[Accounts written off often refers to the accounts receivable that were deemed to be uncollectible and were removed from a receivable account in the general ledger. For example, a manufacturer may have written off an accounts receivable because a customer filed for bankruptcy and has insufficient assets. In this situation the account balance is written [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-accounts-written-off/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is safety stock?</title>
		<link>http://blog.accountingcoach.com/what-is-safety-stock/</link>
		<comments>http://blog.accountingcoach.com/what-is-safety-stock/#comments</comments>
		<pubDate>Thu, 10 May 2012 14:25:42 +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=3439</guid>
		<description><![CDATA[Safety stock is an additional quantity of an item held in inventory in order to reduce the risk that the item will be out of stock. Safety stock acts as a buffer in case the sales of an item are greater than planned and/or the supplier is unable to deliver additional units at the expected [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-safety-stock/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Is a loan payment an expense?</title>
		<link>http://blog.accountingcoach.com/is-loan-payment-expense/</link>
		<comments>http://blog.accountingcoach.com/is-loan-payment-expense/#comments</comments>
		<pubDate>Tue, 08 May 2012 14:00:21 +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=3417</guid>
		<description><![CDATA[Often a loan payment consists of both an interest payment and a payment to reduce the loan&#8217;s principal balance. The interest portion is an expense whereas the principal portion is a reduction of a liability such as Loans Payable or Notes Payable. If a company uses the accrual method of accounting, it is logical to [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/is-loan-payment-expense/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is lead time in purchasing?</title>
		<link>http://blog.accountingcoach.com/what-is-lead-time/</link>
		<comments>http://blog.accountingcoach.com/what-is-lead-time/#comments</comments>
		<pubDate>Thu, 26 Apr 2012 10:00:54 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Inventory and Cost of Goods Sold]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3413</guid>
		<description><![CDATA[In purchasing, lead time is the estimated time between ordering goods and receiving the goods. For instance, if 100 units of Product X are ordered on April 11 and are expected to be received on April 25, the lead time is 14 days. The estimated lead time is one of the factors used in calculating [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-lead-time/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is capital stock?</title>
		<link>http://blog.accountingcoach.com/what-is-capital-stock/</link>
		<comments>http://blog.accountingcoach.com/what-is-capital-stock/#comments</comments>
		<pubDate>Tue, 24 Apr 2012 10:00:09 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Stockholders' Equity]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3410</guid>
		<description><![CDATA[Capital stock is the combination of a corporation&#8217;s common stock and preferred stock (if any). Common stock is usually the first and only capital stock issued by corporations. However, some corporations will also issue preferred stock. The amount received by the corporation when it issued shares of its capital stock is reported in the stockholders&#8217; [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-capital-stock/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>What is a common carrier?</title>
		<link>http://blog.accountingcoach.com/what-is-a-common-carrier/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-common-carrier/#comments</comments>
		<pubDate>Thu, 19 Apr 2012 10:00:27 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3407</guid>
		<description><![CDATA[A common carrier is a business that transports goods for other companies, organizations, or individuals. The common carrier is responsible for any loss associated with the transport of the goods. Examples of common carriers are trucking companies, railroads, and airlines. Related QuestionsWhat is premium on common stock?What is capital surplus?What is petty cash?What are common-size [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-common-carrier/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>How can a company have a profit but not have cash?</title>
		<link>http://blog.accountingcoach.com/how-can-a-company-have-a-profit-but-not-have-cash/</link>
		<comments>http://blog.accountingcoach.com/how-can-a-company-have-a-profit-but-not-have-cash/#comments</comments>
		<pubDate>Tue, 17 Apr 2012 10:00:39 +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=3402</guid>
		<description><![CDATA[A company can have a profit but not have cash because profit is computed using revenues and expenses, which are different from the company&#8217;s cash receipts and cash disbursements. In other words, there is a difference between revenues and receipts. There is also a difference between expenses and expenditures. To illustrate, let&#8217;s assume that a [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/how-can-a-company-have-a-profit-but-not-have-cash/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Why is it necessary to allocate a lump sum payment to individual items?</title>
		<link>http://blog.accountingcoach.com/why-allocate-lump-sum-payment/</link>
		<comments>http://blog.accountingcoach.com/why-allocate-lump-sum-payment/#comments</comments>
		<pubDate>Thu, 12 Apr 2012 10:00:16 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bookkeeping]]></category>
		<category><![CDATA[Depreciation]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3396</guid>
		<description><![CDATA[It is necessary to allocate a lump sum payment to individual items in order to record a fair portion of the lump sum in each of the proper general ledger accounts. For instance, let&#8217;s assume that a corporation made a lump sum payment of $450,000 in order to acquire a building, the land on which [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/why-allocate-lump-sum-payment/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>What is a lump sum payment?</title>
		<link>http://blog.accountingcoach.com/what-is-a-lump-sum-payment/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-lump-sum-payment/#comments</comments>
		<pubDate>Tue, 10 Apr 2012 10:00:44 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Basics]]></category>
		<category><![CDATA[Bonds Payable]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3392</guid>
		<description><![CDATA[A lump sum payment is often associated with a single amount paid to acquire a group of items. For instance, a corporation might pay $50,000 for the inventory and equipment of a small manufacturer that is going out of business. The transaction did not specify any further details. The $50,000 is a lump sum payment. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-lump-sum-payment/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a BOM?</title>
		<link>http://blog.accountingcoach.com/what-is-a-bom/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-bom/#comments</comments>
		<pubDate>Thu, 05 Apr 2012 10:00:24 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Cost and Managerial Accounting]]></category>
		<category><![CDATA[Standard Costing]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3386</guid>
		<description><![CDATA[BOM is the acronym for bill of materials. A BOM is a listing of the quantities of each of the materials used in manufacturing a product. Industrial manufacturers are likely to have an enormous number of BOMs. Each of the BOMs will be a very detailed list of all of the quantities of every material [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-bom/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a real account?</title>
		<link>http://blog.accountingcoach.com/what-is-a-real-account/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-real-account/#comments</comments>
		<pubDate>Tue, 03 Apr 2012 10:00:10 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Chart of Accounts]]></category>
		<category><![CDATA[Debits and Credits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3343</guid>
		<description><![CDATA[A real account is a general ledger account that does not close at the end of the accounting year. In other words, the balances in the real accounts are carried over to become the beginning balances of the next accounting period. Generally, the real accounts are the balance sheet accounts. Balance sheet accounts are the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-real-account/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the difference between an unadjusted trial balance and an adjusted trial balance?</title>
		<link>http://blog.accountingcoach.com/unadjusted-adjusted-trial-balance/</link>
		<comments>http://blog.accountingcoach.com/unadjusted-adjusted-trial-balance/#comments</comments>
		<pubDate>Tue, 27 Mar 2012 10:00:20 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Adjusting Entries]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3339</guid>
		<description><![CDATA[The differences between an unadjusted trial balance and an adjusted trial balance are the amounts recorded as part of the adjusting entries. Adjusting entries include the accrual of revenues that were earned but were not yet recorded, and the accrual of expenses that were incurred but were not yet recorded. Accrued expenses and the related [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/unadjusted-adjusted-trial-balance/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>What is the purpose of assigning accounts receivable?</title>
		<link>http://blog.accountingcoach.com/assigning-accounts-receivable/</link>
		<comments>http://blog.accountingcoach.com/assigning-accounts-receivable/#comments</comments>
		<pubDate>Wed, 21 Mar 2012 10:00:17 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounts Receivable and Bad Debt Expense]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3335</guid>
		<description><![CDATA[The purpose of assigning accounts receivable is to provide collateral in order to obtain a loan. To illustrate, let&#8217;s assume that a corporation receives a special order from a new customer whose credit rating is superb. However, the customer pays for its purchases 90 days after it receives the goods. The corporation does not have [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/assigning-accounts-receivable/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What does a bookkeeper do?</title>
		<link>http://blog.accountingcoach.com/what-does-a-bookkeeper-do/</link>
		<comments>http://blog.accountingcoach.com/what-does-a-bookkeeper-do/#comments</comments>
		<pubDate>Thu, 15 Mar 2012 10:00:46 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3331</guid>
		<description><![CDATA[A bookkeeper is responsible for processing the paperwork for a company&#8217;s business transactions. Ultimately the transactions will be recorded in accounts within the company&#8217;s general ledger. Today this often involves the use of cost effective software such as QuickBooks from Intuit. Bookkeepers are expected to be accurate, efficient, and knowledgeable about debits and credits, the [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-does-a-bookkeeper-do/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Why is an increase in inventory shown as a negative amount in the statement of cash flows?</title>
		<link>http://blog.accountingcoach.com/inventory-statement-of-cash-flows/</link>
		<comments>http://blog.accountingcoach.com/inventory-statement-of-cash-flows/#comments</comments>
		<pubDate>Tue, 13 Mar 2012 10:00:45 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Cash Flow Statement]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3327</guid>
		<description><![CDATA[An increase in inventory indicates that a company has purchased more goods than it has sold. Increasing inventory requires a cash outflow. Cash outflows have a negative effect on the company&#8217;s cash balance. Negative amounts on the statement of cash flows can be interpreted to mean 1) a cash outflow, 2) that cash was used, [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/inventory-statement-of-cash-flows/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>What is a basis point?</title>
		<link>http://blog.accountingcoach.com/what-is-a-basis-point/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-basis-point/#comments</comments>
		<pubDate>Thu, 08 Mar 2012 10:00:59 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bonds Payable]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3324</guid>
		<description><![CDATA[A basis point is a hundredth (1/100) of a percentage point. Expressed another way, one percentage point is equal to 100 basis points. This means that if an interest rate drops by 1/2 of a percentage point (such as from 4% to 3.5%), the drop is 50 basis points. If an interest rate increases from [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-basis-point/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>What is the self-employed person&#8217;s FICA tax rate for 2012?</title>
		<link>http://blog.accountingcoach.com/self-employed-fica-rate-2012/</link>
		<comments>http://blog.accountingcoach.com/self-employed-fica-rate-2012/#comments</comments>
		<pubDate>Mon, 05 Mar 2012 10:02:34 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Payroll Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3319</guid>
		<description><![CDATA[The self-employed person&#8217;s FICA tax rate for 2012 consists of 1) the Social Security tax rate of 10.4% (employee rate of 4.2% + employer rate of 6.2%) of the first $110,100 of net profit, and 2) the Medicare tax rate of 2.9% (employee rate of 1.45% + employer rate of 1.45%) of the entire amount [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/self-employed-fica-rate-2012/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the employer&#8217;s FICA tax rate for 2012?</title>
		<link>http://blog.accountingcoach.com/employers-fica-tax-2012/</link>
		<comments>http://blog.accountingcoach.com/employers-fica-tax-2012/#comments</comments>
		<pubDate>Fri, 02 Mar 2012 10:00:25 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Payroll Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3314</guid>
		<description><![CDATA[The employer&#8217;s FICA tax rate for 2012 consists of 1) the Social Security tax rate of 6.2% of each employee&#8217;s first $110,100 of wages, salaries, etc., and 2) the Medicare tax of 1.45% of each employee&#8217;s total wages, salaries, etc. In other words, the employer&#8217;s FICA tax rate for 2012 is 7.65% of each employee&#8217;s [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/employers-fica-tax-2012/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is the employee&#8217;s FICA tax rate for 2012?</title>
		<link>http://blog.accountingcoach.com/employees-fica-tax-2012/</link>
		<comments>http://blog.accountingcoach.com/employees-fica-tax-2012/#comments</comments>
		<pubDate>Thu, 01 Mar 2012 18:06:56 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Payroll Accounting]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3309</guid>
		<description><![CDATA[The employee&#8217;s FICA tax rate for 2012 consists of 1) the Social Security tax rate of 4.2% of the first $110,100 of wages, salaries, etc., and 2) the Medicare tax of 1.45% of all wages, salaries, etc. In other words, the employee&#8217;s FICA tax rate for the year 2012 is 5.65% of the first $110,100 [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/employees-fica-tax-2012/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>What is an irrevocable letter of credit?</title>
		<link>http://blog.accountingcoach.com/irrevocable-letter-of-credit/</link>
		<comments>http://blog.accountingcoach.com/irrevocable-letter-of-credit/#comments</comments>
		<pubDate>Tue, 28 Feb 2012 11:00:30 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounts Payable]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3300</guid>
		<description><![CDATA[An irrevocable letter of credit is a financial instrument used by banks to guarantee a buyer&#8217;s obligations to a seller. It is irrevocable because the letter of credit cannot be modified unless all parties agree to the modifications. Irrevocable letters of credit are often used to facilitate international trade because of the additional risks involved. [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/irrevocable-letter-of-credit/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a journal?</title>
		<link>http://blog.accountingcoach.com/what-is-a-journal/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-journal/#comments</comments>
		<pubDate>Thu, 23 Feb 2012 11:00:19 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3296</guid>
		<description><![CDATA[In accounting and bookkeeping, a journal is a record of financial transactions in order by date. A journal is often defined as the book of original entry. The definition was more appropriate when transactions were written in a journal prior to manually posting them to the accounts in the general ledger or subsidiary ledger. Manual [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-journal/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is a vendor?</title>
		<link>http://blog.accountingcoach.com/what-is-a-vendor/</link>
		<comments>http://blog.accountingcoach.com/what-is-a-vendor/#comments</comments>
		<pubDate>Tue, 21 Feb 2012 11:00:47 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounts Payable]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3291</guid>
		<description><![CDATA[A vendor is a person or business that supplies goods or services to a company. Another term for vendor is supplier. In many situations a company presents the vendor with a purchase order stating the goods or services needed, the price, delivery date, and other terms. Generally, when the vendor delivers the goods or services [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-a-vendor/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What causes a corporation&#8217;s market value to be greater than its book value?</title>
		<link>http://blog.accountingcoach.com/market-value-book-value/</link>
		<comments>http://blog.accountingcoach.com/market-value-book-value/#comments</comments>
		<pubDate>Fri, 17 Feb 2012 11:03:28 +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=3284</guid>
		<description><![CDATA[One cause of a corporation&#8217;s market value being greater than its book value is the accountant&#8217;s cost principle. In order for an item to be listed as an asset on a corporation&#8217;s balance sheet, the item must have been purchased (or donated). If an item is not listed on the balance sheet as an asset, [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/market-value-book-value/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is an uncleared cheque?</title>
		<link>http://blog.accountingcoach.com/what-is-an-uncleared-cheque/</link>
		<comments>http://blog.accountingcoach.com/what-is-an-uncleared-cheque/#comments</comments>
		<pubDate>Thu, 16 Feb 2012 00:53:18 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Bank Reconciliation]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3278</guid>
		<description><![CDATA[An uncleared cheque is a cheque that has been written and recorded in the payer&#8217;s records, but the cheque has not yet been paid by the bank on which it is drawn. In the U.S. accounting textbooks, an uncleared cheque is referred to as an outstanding check. In the bank reconciliation process an uncleared cheque [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-an-uncleared-cheque/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>How is a voucher used in accounts payable?</title>
		<link>http://blog.accountingcoach.com/voucher-in-accounts-payable/</link>
		<comments>http://blog.accountingcoach.com/voucher-in-accounts-payable/#comments</comments>
		<pubDate>Tue, 14 Feb 2012 21:09:28 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounts Payable]]></category>
		<category><![CDATA[Bookkeeping]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3273</guid>
		<description><![CDATA[A voucher is often a prenumbered form used in the accounts payable department to standardize and enhance a company&#8217;s internal control over payments to its vendors and service providers. A voucher is usually prepared after a vendor&#8217;s invoice has been matched with the company&#8217;s purchase order and receiving report. In addition to attaching the three [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/voucher-in-accounts-payable/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What does an accountant do?</title>
		<link>http://blog.accountingcoach.com/what-does-an-accountant-do/</link>
		<comments>http://blog.accountingcoach.com/what-does-an-accountant-do/#comments</comments>
		<pubDate>Fri, 10 Feb 2012 14:45:19 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Accounting Careers]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3267</guid>
		<description><![CDATA[Some accountants are directly involved in preparing an organization&#8217;s financial statements. This is likely to include maintaining the general ledger and supervising some employees. Other accountants work with a corporation&#8217;s management in analyzing costs of operations, products, and special projects. Usually this will also involve budgeting and preparing reports which highlight any variances. Some accountants [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-does-an-accountant-do/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>What is accounting?</title>
		<link>http://blog.accountingcoach.com/what-is-accounting/</link>
		<comments>http://blog.accountingcoach.com/what-is-accounting/#comments</comments>
		<pubDate>Wed, 08 Feb 2012 02:10:14 +0000</pubDate>
		<dc:creator>ACoach</dc:creator>
				<category><![CDATA[Financial Accounting]]></category>
		<category><![CDATA[Improving Profits]]></category>

		<guid isPermaLink="false">http://blog.accountingcoach.com/?p=3260</guid>
		<description><![CDATA[Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting the information in various reports and analyses. Accounting is also a profession consisting of individuals having the formal education to carry out these tasks. One part of accounting focuses on presenting the information in the form of general-purpose financial statements (balance [...]]]></description>
		<wfw:commentRss>http://blog.accountingcoach.com/what-is-accounting/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<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>2</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>
	</channel>
</rss>

