Management Accountant

Provisions are the liabilities or the anticipated items such as depreciation. You can say provisions are expenses. Reserves are the profits of any company and a part of that profit is placed back to the business to keep it sustainable in tough times of a company.

All types of exchange bills, bonds and other securities owned by a merchant that is payable to him are said as bills receivable.

Project implementation involves six steps in total such as:

☛ Identify Need

☛ Generate and Screen Ideas

☛ Conduct Feasible Study

☛ Develop the Project

☛ Implement the Project

☛ Control the Project

CPA stands for Certified Public Accountant. To become a CPA, one should have to do many other qualifications as well. It is a qualification with 150 hour requirement; it means that one should complete 150 credit hours at any accredited university.

Debit abbreviation is “dr” and credit abbreviation is “cr”.

It is the software used for accounting in small business and shops for managing routine accounting transactions.

A ledger can be referred as an accounting book that keeps the record of journal entries in a chronological order to individual accounts. The process of recording this journal entries is known as posting.

Some asset accounts have a credit balance due to following reasons,

☛ Receiving and posting an amount that was higher than the recorded receivable

☛ Expenses occurred faster than the agreed upon prepayments

☛ An error caused by posting an amount to a wrong account

☛ The amount of checks written exceeded the positive amount in the Cash account

☛ Continuing to amortize or depreciate an asset after its balance has reached zero

An account manager uses the information at his disposal to maintain and increase client interest. Staying current and doing marketing research are key factors to understanding what the customer is getting tired of and what he might become interested in. This information has to be effectively coordinated with the company departments in order to result in a product that will prevent the customer from leaving.

There are three types of ledger

☛ General ledger

☛ Debtors ledger

☛ Creditors ledger

A deferred asset refers to a deferred debit or a deferred charge. An example of a deferred charge is bond issue costs. These costs involves all of the fees or charges that an organization incurs in order to register and issue bonds. This fees are paid in a near time when the bonds are issued but it will not be expensed at that time.

The unpresented cheque will get recorded as a credit to the cash account in the company’s General ledger.

Accrued expenses usually tend to be extremely short-term. So you would record them within the “current liabilities section” of the balance sheet.

Liability can be defined as an obligation towards another company or party. It may consist of delivering goods, rendering services or paying money. They are the opposite of assets, and it may include

☛ Account payable

☛ Interest and dividend payable

☛ Bonds payable

☛ Consumer deposits

☛ Reserves for federal taxes

☛ Short term loans

☛ Recording of transactions in the journal

☛ Posting of journal entry in to the respective ledger accounts and then preparing a trial balance

☛ Preparing final accounts and closing of books of accounts

Accrual Accounting is a method for measuring the performance and position of the company by identifying economic events regardless of when cash transaction happened. In this method, revenue is compared with the expenditures, at the time in which the transaction happens rather than when the payment is made.

The general classification of accounts that usually ledger account involves are:

☛ Assets- Cash, Accounts Receivable

☛ Liabilities- Accounts Payable, Loans Payable

☛ Stockholders’ equity- Common Stock

☛ Operating revenues- Revenues through Sales

☛ Operating expenses- Rent Expense, Salaries Expense

☛ Non-operating revenues and gains- Investment Income, gain on Disposal of Equipment

☛ Non-operating revenues and losses- Interest Expense, Loss on Disposal of Equipment

Yes, I do believe that accounting standards play a very important role to prepare good quality and accurate financial reports. It ensures reliability and relevance in financial reports.

It is a type of accounting that is specifically designed for the business that offers services to users.

Yes, both are different terms in accounting. Inactive accounts means that accounts have been closed and will not be used in future as well. While, dormant accounts are those that are not functional today but may be used in future.