Bookkeeping

Purchase discounts are recorded separately from regular purchased costs and then deducted from gross purchases. This is done to ensure that only actual payments made during a period are included in expenses for that period. Cash discounts typically have a more favorable effect on cash flow than non-cash discounts. This is because cash discounts require […]

As a result, the company will experience a gain known as “funded surplus” as long as it earns the required return on its planned assets to cover any growth in pension obligations. Comprehensive income is the sum of a company’s net income and other comprehensive income. Over 1.8 million professionals statement of comprehensive income use […]

However, the difference between the two figures in this case would be a debit balance of $2,000, which is an abnormal balance. This situation could possibly occur with an overpayment to a supplier or an error in recording. In accounting, the capital account shows the net worth of a business at a specific point in […]