Accounting Articles

September 26, 2012

If you ever worked in an accounting department, you are probably familiar with reversing entries. However, for non-accountants reversing entries represent an accounting term which may sound technical and confusing. In this article we will talk about reversing entries and why they are used.

September 18, 2012

Have you ever wondered if increasing revenues provides more value to shareholders of a company than decreasing costs (i.e., margin improvements)? In this article we look at a ratio called Relative Value of Growth that can help answer this question.

September 11, 2012

Record keeping is essential for operating a business. Record keeping can be manual or computer-based. Both ways have their advantages and disadvantages. In either case, cost of record keeping is usually high.

August 29, 2012

Do you normally just look at the net income of a company? Do you analyze the company's cash flows from operations? See how the two are connected in this article discussing the quality of income.

August 20, 2012

What are operational obligations? What are financing obligations? How is a bond different from a note payable? How to define long-term liabilities? Find answers in this accounting article.

August 14, 2012

Why isn't managerial accounting used for external financial reporting? Why isn't financial accounting sufficient to run a company? Find answers to these and other questions in this article.

August 5, 2012

What do investing and financing activities and related cash flows represent? How are they different? Why are non-cash activities presented as part of the cash flow statement? Answers to these questions are available in this article.

July 31, 2012

Does operating income equal operating cash flows? Is it good when there are negative cash flows? Answers to these and other questions are in this accounting article.

July 21, 2012

Should the useful life of a newly acquired fixed asset be the same as its physical life? This and other questions related to fixed asset useful lives are answered in this article.

July 13, 2012

Ever wondered what the cost of quality is? This article explains what such cost is and provides examples of prevention costs, appraisal costs, internal failure costs, and external failure costs.

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Accounting Articles
Accounting Articles include guides and answers. Accounting guides explain application of accounting principles in practice. Great assistance if you are looking for real-life accounting situations. Accounting answers explain particular accounting topics suggested by our website users. Great to find quick answers for specific topics.