Management Accountant

A Master Account has subsidiary accounts. A master account receivable could be anything, it could be account receivable for various individual receivable accounts.

The cash flow statement showcase the cash generated and used during the year or months. Various activities that are involved for the Cash Flow are

☛ Operating activities – business activities accounting to cash

☛ Investing activities – sale and purchase of equipment or property

☛ Financial activities- purchase of stock and own bonds

☛ Supplemental information- exchange of significant items that don’t involve cash

The unearned revenues falls under “Liability” account.

The equation for Acid-Test Ratio in accounting

Acid-Test Ratio = (Current assets – Inventory) / Current Liabilities

The accounting events that are frequently involved in compound entries are;

☛ Record multiple line items in a supplier invoice that address to different expenses

☛ Record all bank deductions associated to a bank reconciliation

☛ Record all deduction and payments related to a payroll

☛ Record the account receivable and sales taxes related to a customer invoice

It is a type of banking that involves a retail client. These clients are the normal people and not any organizational customers.

Generally speaking, it is important to do research on a regular basis in relation to every individual client or category of clients. Effective research assesses current situations to project future developments and opportunities for the company. It studies competitors and proposes improvements.

As per fair value accounting, a company has to show the value of all of its assets in terms of price on balance sheet on which that asset can be sold.

☛ Wage accrual is entered with a credit to the “wages payable account”

☛ Interest accrual is entered with a credit to the “interest payable account”

☛ Payroll tax accrual is entered with a credit to the “payroll taxes payable account”

When service or goods have been delivered, then revenues are reported in the accounting period.

The difference between accumulated depreciation and depreciation expense is that

☛ Accumulated depreciation: It is the total amount of depreciation that has been taken on a company’s assets up to the date of the balance sheet

☛ Depreciation expense: It is the amount of depreciation that is reported on the income statement. Basically, it is the amount that corresponds only to the period of time indicated in the heading of the income statement.

Well, I was quite good in accounting throughout but in my masters, when I got distinction I decided to adopt this field as a profession.

Long-term notes payable or liabilities are referred for that loan that are not supposed to due for more than a year. These are the loans from banks or financial institution that are secured against various assets on the balance sheet, such as inventories.

☛ Asset: What financial institute (bank) or people owe you

☛ Liabilities: It is something you owe people or organization

☛ Equity: It is something you own, for example, the amount of your house loan you paid off

Double entry book-keeping involves five types of accounts,

☛ Income accounts

☛ Expense accounts

☛ Asset accounts

☛ Liability accounts

☛ Capital accounts

These are the assets that cannot be shown or touch. Fictitious assets can only be felt such as good will, rights etc.

To adjust entries into account, you can sort entries into five categories.

☛ Accrued expenses: Expenses have been incurred but the vendors invoices are not generated or processed yet

☛ Accrued revenues: Revenues have been earned but the sales invoices are not generated or processed yet

☛ Deferred revenues: Money was received in advance of having been paid or earned

☛ Deferred expenses: Money was paid for a future expense

☛ Depreciation expense: An asset purchased in one period must be allocated to expense in each of the accounting periods of the asset’s useful life

Consigner is the owner of the goods or you can say he is the person who delivers the goods to the consignee. The consignee is the person who receives the goods.

It is the residual value of an asset. The residual value is the value that any asset holds after its estimated life time.