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You may also use this method for revenue and expenses received or paid before providing or receiving the service (deferral). Bookkeepers have to keep track of more transactions when using the accruals method. This means you already paid for the goods or services that you’re yet to receive. Then, in February, when you receive the …

What Are Accruals? How Accrual Accounting Works, With Examples Read More »

The future amount can be a single payment at the date of maturity, a series of payments over future time periods, or a combination of both. The short term notes payable are classified as short-term obligations of a company because their principle amount and any interest thereon is mostly repayable within one year period. They are …

Notes Payable Accounting Read More »

Therefore, considering the older, more expensive inventory was recognized, net income is lower under FIFO for the given period. Each of these three methodologies relies on a different method of calculating both the inventory of goods and the cost of goods sold. Depending on the situation, each of these systems may be appropriate. In addition, …

FIFO vs LIFO: Comparing Inventory Valuation Methods Read More »

An account holder cannot request stop payments on cashier’s checks because the money leaves the account holder when the check is issued, not when it is cashed. However, if you believe the check is lost or stolen, you can request a cancellation. This declaration then begins a 90-day waiting period, after which the bank may …

See What Happens When You Stop Payment on a Check Read More »