Category: Bookkeeping

What Is Capitalization?

Bookkeeping

Recognizing expenses in the period incurred allows businesses to identify amounts spent to generate revenue. The journal entry for capitalizing expenses involves debiting the fixed asset account and crediting the cash or accounts payable account. The amount debited should be equal to the cost of the asset, including all related expenses. The credit should be ….  Read More

Stockholders Equity Balance Sheet Guide, Examples, Calculation

Bookkeeping

Contents: Dividends 8: Stockholders’ Equity Section of the Balance Sheet Financial Accounting Paid-In Capital and Stockholders’ Equity What Is the Difference Between Stockholders’ Equity, Book Value, and Market Value? It also helps to find out if the company has gone over its assets without accumulating enough earnings. The board members can then keep track of ….  Read More

Variance Analysis Explained

Bookkeeping

Content Management Accounting How to Process Data? 6 Stages for Success Direct material variance: Financial Data Analysis: Must Know Tips for Success Related Courses The variance represents the under absorption or over absorption of variable overheads. The labour efficiency variance is the difference between the actual hours taken to produce the actual output and the ….  Read More