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December 05, 2019

Charles Lutwidge
Control Accounts

Control Accounts

Use of Control Accounts A control account summarizes a set of subsidiary accounts. Large businesses use it to minimize the summary postings in the general ledger. Instead, enterprises record all the transaction details in a separate subsidiary ledger. Such actions mean..

Articles

December 05, 2019

Charles Lutwidge
Contra Expense Account

Contra Expense Account

Businesses need to know what contra accounts are to keep accurate accounting records. They also allow us to follow the matching principle. Expense accounts have a normal debit balance, which means they increase with debit entries. A contra account reduces an..

Articles

December 03, 2019

Charles Lutwidge
Accrual to Cash Conversion

Accrual to Cash Conversion

Businesses manage their finances using either cash or accrual basis accounting. One of the most complicated concepts to understand in accounting is converting a set of accrual-based books for a cash basis tax return. Accrual accounting is the standard for more..

Articles

December 03, 2019

Charles Lutwidge
Types of Error in Accounting

Types of Error in Accounting

An error in accounting is a non-fraudulent error in double-entry bookkeeping of transactions. In most cases, it happens due to a lack of accounting knowledge or carelessness of a bookkeeper. The business should take appropriate investigating measures as soon as it..

Articles

December 03, 2019

Charles Lutwidge
Accounting Transaction Analysis

Accounting Transaction Analysis

The accounting transaction analysis is the process of translating the business activities and events that have a measurable effect on the accounting equation into the accounting language and writing it in the accounting books. This is the first stage in the accounting..

Articles

December 03, 2019

Charles Lutwidge
What is the accounting cycle?

What is the accounting cycle?

An accounting cycle is a system of actions for identifying, summarizing, and submitting reports on economic events and operations. The stages of the accounting cycle include maintaining transaction records in the ledger, drawing up a trial balance, reconciling accounts, drawing up..

Articles

December 02, 2019

Charles Lutwidge
What is a general ledger account?

What is a general ledger account?

Definition of General Ledger Account The general ledger (GL) is the main consolidated accounting register, which reflects data on the company’s entire financial transaction history for all bookkeeping accounts used by the company. Businesses can maintain the general ledger on paper..

Articles

November 27, 2019

Charles Lutwidge
Royalties in Accounting

Royalties in Accounting

The concept of “royalty” came from the Latin language, where “regalis” meant “royal”. Today, the term has nothing to do with monarchs, but it directly relates to finances, money, making a profit. Royalty is a type of monetary reward for the..

Articles

November 26, 2019

Charles Lutwidge
Accruals and Deferrals

Accruals and Deferrals

When it comes to accounting, timing is everything. To allocate revenues and expenses to the right accounting period, accountants use accruals and deferrals. This approach also helps with comparing financial statements from different periods. Accruals and deferrals follow the Matching Principle..

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