education
Why is variable costing not used for external reporting?
The reason that the variable costing can’t be used for the external financial reports is because the GAAP has a rule that the manufacturing overhead has t...
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Education
education
What is depreciation in cash flow?
Depreciation in cash flow statement Depreciation is a non-cash expense, which means that it needs to be added back to the cash flow statement in the opera...
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education
What order are the financial statements prepared?
Financial statements are prepared in the following order: Income Statement. Statement of Retained Earnings – also called Statement of Owners’ Equity. The ...
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education
What are the 3 main classifications of accounts?
A business must use three separate types of accounting to track its income and expenses most efficiently. These include cost, managerial, and financial ac...
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education
What is the journal entry for repairs?
Answer: To record a repair or maintenance expense in your records, debit the repairs and maintenance expense account by the amount of the expense in a jou...
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Is depreciation included in selling expense?
Typically, depreciation and amortization are not included in cost of goods sold and are expensed as separate line items on the income statement. However, ...
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Are subtracted from sales to compute the contribution margin?
When computing contribution margin, subtract all variable costs, including variable manufacturing costs and variable selling, general, and administrative ...
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education
How much do big 4 audit partners make?
How much do big 4 accounting firm partners make a year? Big 4 partners make on average about $450,000 a year. How much do KPMG partners earn? The median p...
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education
How does accounting equation help accountants?
The accounting equation ensures that all uses of capital (assets) remain equal to all sources of capital (debt and equity). Double-entry accounting requir...
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education
What happens with selling cost when the sales revenue increases?
A change in demand affects your sales and impacts your variable costs. As your sales grow, your variable costs increase. As your sales fall, your variable...
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