What is Management? Management is the process of getting things done through others with the help of some basic activities like planning, organizing, directing, coordinating, and controlling to achieve the desired goals and objectives. It is the basis for every organization. An organization can not run for a long time if its all devices are … Read more
What are Levels of Management? Levels of management are also known as management hierarchy. Levels of management can be simply defined as the arrangement of managers’ positions in organizations based on their roles, responsibilities, and authority. In every organization there are 3 levels of management 1) Top-Level Management, 2) Middle-Level Management, and 3) Lower-Level Management. … Read more
Principles of Management The practice of management is based on specific disciplines which are known as principles of management. Management principles are the facts and truth gained through deep observation and experimentation. Multiple scholars have added many principles at various times in their research and investigation one of them a scholar is Henri Fayol. Henri … Read more
What is Notes Receivable? The notes receivable is a return promise by the buyer to repay a certain due amount to the seller within a certain time period. A note receivable is a written agreement between the maker and payee. It is also used to finance short-term funds to clients or customers. The notes receivable … Read more
Aging Accounts Receivable Method Under the aging accounts receivable method, the uncollectible expense amount is determined based on the age of the account receivable. The accounts receivable which are old have a greater chance of being bad debt. The probability is distributed among the account receivables depending often their ages. In general, the longer an … Read more
Direct write-off method and Allowance method Allowance method and direct written method definition and journal entries The Direct write off method Under the direct write off method, collectible account expense account or bad debt expense has been declared in uncollectible. In other words, the bad debt is occurred the accountant records it in a financial … Read more
Weighted Average Cost (WAC) Method Weighted average cost (WAC) per unit is calculated by dividing the units available for sale from the cost of goods available for sale. Weighted average cost (WAC) method also called a weighted average or weighted average method. According to this method, the average cost for the good available for sale … Read more
Last-In-First-Out (FIFO) method LIFO method definition In last in first out (LIFO) method, the recently purchased goods are sold or used at first. The beginning and earlier goods purchased are ending inventory. This method is applicable to the organization which durable goods. The advantages of this method over the FIFO method is that it helps … Read more
First-In-First-Out (FIFO) Method FIFO method definition First-in-first-out (FIFO) method is an accounting tool used to find out the value or cost of inventory (ending inventory) and cost of goods sold (COGS). According to this method, the inventory which is purchased at first is sold out or used at first. This method is applicable to the … Read more
Inventory errors: Beginning and Ending Inventory and Income statement correction The errors in recording inventories give the correct reason. Sometimes it is overstated on profit and sometimes it understates on profit. Actually, the mistake in recording the beginning inventory and closing inventory is called inventory errors. The beginning inventory like an expense, when it is … Read more