August 13, 2019

Definition of Balance Sheet

The balance sheet is prepared in order to report an organization's financial position at the end of an accounting period, such as midnight on December 31.

A corporation's balance sheet reports its:

  • Assets (resources that were acquired in pa...

March 20, 2019

Direct labor refers to the employees and temporary help who work directly on  manufacturer's products. (People working in the production area, but not directly on the products, are referred to as indirect labor.)

The direct labor cost is 1) the cost of the wag...

March 13, 2019

Definition of Owner's Equity
Owner's equity is one of the three main sections of a sole proprietorship's balance sheet and one of the components of the accounting equation: Assets = Liabilities + Owner's Equity.

Owner's equity represents the owner's investment...

March 6, 2019

Costs that are matched with revenues on the income statement. For example, Cost of Goods Sold is an expense caused by Sales. Insurance Expense, Wages Expense, Advertising Expense, Interest Expense are expenses matched with the period of time in the heading of the incom...

February 28, 2019

A company's controller is the chief accounting officer and heads the accounting department. The controller is responsible for the company's financial statements, general ledger, cost accounting, payroll, accounts payable, accounts receivable, budgeting, tax compliance,...

February 13, 2019

The ratio of total liabilities to stockholders' equity. The higher the proportion of debt to equity, the more risky the company appears to be. An indicator of the amount of financial leverage at a company. It indicates the proportion of the company's assets provided by...

January 16, 2019

The record of journal entries appearing in order by date. Some refer to the journal as the book of original entry, since the entries are first recorded in a journal. From the journal the entries will be posted to the designated accounts in the general ledger. With manu...

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October 31, 2019