Bookkeeping

That means it does a better job than cash basis accounting of matching expenses and revenue to the correct time period in which they were incurred. It also produces a more complete balance sheet that factors in accounts payable, accounts receivable, current assets such as inventory, fixed assets and liabilities like loans. When transactions are […]

Many retailers generate a large chunk of their earnings around the holidays, which could explain why Macy’s chooses this end date. The end of your natural business year is usually the time when you’re most likely to have converted your inventory to cash, and your current ratio is at its maximum (i.e. when you’re at

The major problem with T accounts is that they are time consuming. You need to set up every account separately and then go through them constantly to record every transaction as it comes in. I say normal balances because they don’t always have balances on those sides—but they should. For example, if your checking account