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+84 367833568 vietnamtotravel@gmail.com

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Category

Bookkeeping

Inherent Risk Overview, Residual Risk, & Other Audit Risks The remaining risk after steps have been taken to reduce or mitigate inherent risk. Here are examples of control measures that could be implemented for the two risks previously discussed. This standard provides new inherent risk guidance, particularly in regard to inherent risk factors. A risk...
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This type of app makes it simple to capture billable activities in real-time, reducing the likelihood of missing or forgetting to record your billable hours and expenses. How will you include law firm accounting and financial staff in your electronic billing process? Consulting with your accountant or financial team can help when creating your electronic...
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If only one of these conditions are met, the company will not include it on the balance sheet. Whether you’re taking out a loan to purchase a new piece of equipment, or making purchases from vendors on credit — your business is accruing liabilities. For expenses governed by contracts, such as software or maintenance agreements,...
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This classification is based on the account’s role in the financial statements and ensures that financial transactions are recorded correctly. When an account produces a balance that is contrary to what the expected normal balance of that account is, this account has an abnormal balance. We can illustrate each account type and its corresponding debit and...
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Understanding Closing Entries in Accounting: Purpose and Process This gives you the balance to compare to the income statement, and allows you to double check that all income statement accounts are closed and have correct amounts. If you put the revenues and expenses directly into retained earnings, you will not see that check figure. No...
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Closing temporary accounts to the income summary account requires an extra step. However, it also gives an audit record of the year’s revenues, expenses, and net income. Automation simplifies the reconciliation process for both temporary and permanent accounts. Automated reconciliation tools compare account balances against external statements or records, ensuring that discrepancies are identified and...
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The payments are at the end of the payment intervals, and both the compounding frequency and the payment frequency are the same (both quarterly). Because this is a simple annuity, an interest rate conversion is not required. Consider a scenario where you invest $1,000 at the end of every year into a savings account that...
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If you had any of those expenses because you added a new customer, it’s a variable cost. It’s indirect and is not above the line because the customer didn’t directly pay for it. Because your gross profit percent % shows contribution to overhead formula how effective you are in running your business. It tells you...
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Bond issuers who receive higher credit ratings are far likelier to fetch higher prices for their bonds than similar, lower-rated issuers. In the next section, you’ll see an example of the calculation using the straight-line amortization method. Ultimately, the unamortized portion of the bond’s discount or premium is either subtracted from or added to how...
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Now that you have reconciled all your accounts and transactions, you’re ready to close out the month and print out your financial reports. Think of this as money saved in the form of assets or products; hence you must keep a careful record to track them. It will help you physically run a periodic stock...
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