Accounting Category: Accruals

Accounting Articles

December 15, 2015

This articles talks about one way (among others) to perform periodic accrual of annual (quarterly, etc.) expenditures.

October 31, 2013

Companies often provide warranties to their customers. There may be standard warranties and extended warranties. Standard warranties are provided when a product is sold and may cover periods from a few months to multiple years. Extended warranties usually require a separate payment and cover periods in addition or after standard warranties. Companies need to account for standard and extended warranties appropriately. We will discuss such accounting in this article.

March 30, 2013

Quite often rent agreements classified as operating leases include uneven rent payment terms (e.g., escalating rent payments or rent holidays). For example, a 5-year building rent agreement may specify that rents will go up 5% every year after the first year. Some companies assume that the rent expense should be recognized based on the rent payments. However, under US GAAP this most probably won’t be true. In this article, we review accounting for lease agreements with uneven rent payments.

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.

April 14, 2012

Learn about incentive compensation types and accounting entries for cash bonuses.

September 23, 2011

Learn how to calculate accrued payroll and payroll expense at period end. Examples of accounting for wages and salaries accrual are provided.

July 10, 2010

Account for payroll related liabilities.

March 5, 2010

Calculate and record utility expense accrual. Sample journal entries.

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Accounting Categories
Accounting categories represent a collection of accounting guides and answers related to one accounting area.