Types of Costs

Direct costs are those costs that cann be directly attributed to a product or product line, or to one source of sales revenue, or one business unit or operation of the business. An example of a direct cost would be the cost of tires on a new automobile. Indirect costs are very different and can’t(…)

What is accounting fraud?

Accounting fraud is a deliberate and improper manipulation of the recording of sales revenue and/or expenses in order to make a company’s profit performance appear better than it actually is. Some things that companies do that can constitute fraud are: –Not listing prepaid expenses or other incidental assets –Not showing certain classifications of current assets(…)

43 What’s the difference between private and public company reporting

A public company is a enterprise whose securities are traded on the general public inventory exchanges, such because the New York Inventory Change and Nasdaq. A personal firm is held solely by its house owners and isn’t traded publicly. When the shareholders of a personal enterprise obtain the periodical monetary reviews, they’re entitled to imagine(…)

Forensic Accounting

Is there such a thing as a forensic accountant? Well, you might find it hard to believe but there are actually forensic accountants out there and it is a very good profession. Forensic accounting is used in areas like litigation support and investigative accounting. Litigation support is very important and the forensic accountants play a(…)

What is a corporation?

Most businesses start out as a small company, owned by one person or by a partnership. The most common type of business when there are multiple owners is a corporation. The law sees a corporation as real, live person. Like an adult, a corporation is treated as a distinct and independent individual who has rights(…)

About GAAP

While many businesses assume that accountants are bound by generally accepted accounting practices and that these are inviolate, nothing could be further from the truth. Everything is subject to interpretation, and GAAP is no different. For one thing, GAAP themselves permit alternative accounting methods to be used for certain expenses and for revenue in certain(…)

Accountancy Auditing Careers

Within the field of accounting, there are a lot of career choices and accountancy auditing careers is just one. Auditing is very important and it is considered as an integral part of business finances. Auditors are greatly needed to examine, analyze, and verify the business finances. The Bureau of Labor claims that accountancy auditors are(…)

Measuring Costs

Measuring profits or net income is the most important thing accountants do. The second most important task is measuring costs. Costs are extremely important to running a business and managing them effectively can make a substantial difference in a company’s bottom line. Any business that sells products needs to know its product costs and depending(…)