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Reversing Entries Financial Accounting

The current entry would be to debit the accrual expense account and debit cash. Reversing entries are journal entries are used to cancel or neutralize entries made in the previous accounting period. If the accountant did not make a reversing…

Job Order Costing Principles of Managerial Accounting

A liability is a present obligation for an organization to provide cash or some other service in the future. Examples of common liability accounts include, Accounts Payable, Salaries Payable, or Taxes Payable. FreshBooks Project Profitability reporting tool collects all your…

Normal Balance of Accounts: Definition and Examples

This gives you timely grading information with which to make decisions about your schooling. Thousands of people have transformed the way they plan their business through our ground-breaking financial forecasting software. Let’s recap which accounts have a Normal Debit Balance…

The proper classification of fixed assets

These assets play a critical role in how businesses generate revenue and meet the needs of customers. That’s why it’s so important to manage fixed assets carefully — they are essential for success. Here’s what you need to know about…

Accounting Cycle Definition & Examples for Business

Another perk of using accounting software is the reporting functionality that allows you to generate essential reports and analyze your company’s financial health easily. The trial balance gives you an idea of each account’s unadjusted balance. Such balances are then…