business
What are the three main headings in the balance sheet?
A business Balance Sheet has 3 components: assets, liabilities, and net worth or equity. The Balance Sheet is like a scale. Assets and liabilities (busine...
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Business
business
What is the journal entry of writing off bad debts?
The journal entry is a debit to the bad debt expense account and a credit to the accounts receivable account. It may also be necessary to reverse any rela...
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business
How do you appeal to your audience?
9 Ways to Appeal to Your Target Audience Go with Emotions. There is no better way to connect with anybody or group of people than by going with emotions. ...
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business
How do you calculate net taxable sales?
To calculate taxable sales when your prices include sales tax, divide your total revenue by one plus your local sales tax amount, says Accounting Coach. F...
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business
Does sales discount have a normal credit balance?
Account Type Revenue accounts typically have normal credit balances (credit to increase, debit to decrease) but Sales Discounts and Sales Returns and Allo...
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business
Which of the following inventory valuation methods tends to smooth out erratic changes in costs?
The inventory valuation method that tends to smooth out erratic changes in costs is: FIFO. When applying the lower of cost or market method to inventory v...
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business
How is the subtotal operating income computed on the income statement?
The operating income is positioned as a subtotal on a multi-step income statement after all general and administrative expenses, and before interest incom...
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business
When was Activity Based Costing developed?
ABC was first defined in the late 1980s by Kaplan and Bruns. It can be considered as the modern alternative to absorption costing, allowing managers to be...
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business
What do you mean by payback period?
The payback period disregards the time value of money. It is determined by counting the number of years it takes to recover the funds invested. For exampl...
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business
Is sales commission a product cost?
Sales commissions are not part of the cost of a product. Therefore, sales commissions are not assigned to the cost of goods held in inventory or to the co...
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