Does a stock split affect retained earnings?
Accounting for stock splits A stock split does not affect stockholders’ equity accounting (e.g., paid-in capital, retained earnings, and total stockholder...
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What are advantages and limitations of marginal cost pricing?
(1) Marginal costing system is very useful for internal purposes – decision making, planning and control. (2) Calculation of cost of sales, under marginal...
Is sales commission a product cost?
Sales commissions are not part of the cost of a product. Therefore, sales commissions are not assigned to the cost of goods held in inventory or to the co...
What are control accounts in accounting?
A control account is a summary account in the general ledger. It can also be referred to as an adjustment account or controlling account. The control acco...
What is field level auditing?
Field-level auditing enables you to monitor changes to important data values in your cases. From a security perspective, it is useful to track modificatio...
Who usually defaults on a mortgage contract?
The lender may file a notice of default when a mortgagor falls behind on their mortgage payments. Information on notices of default normally includes the ...
Is selling assets considered income?
If your business is a sole proprietorship, a sale is treated as if you sold each asset separately. Most of the assets trigger capital gains, which are tax...
Does HST recoverable have a debit balance?
HST is a consumer tax which means that businesses are able to claim back any HST they pay on purchases of supplies, expenses ,etc. Any HST paid by the bus...
When was the 1921 budget and Accounting Act?
The Budget and Accounting Act of 1921 ( Pub. L. 67–13, 42 Stat. 20, enacted June 10, 1921) was landmark legislation that established the framework for the...
What are direct expenses in accounting?
Direct expense is an expense incurred that varies directly with changes in the volume of a cost object. A cost object is any item for which you are measur...
