An account settlement is the process of transferring money from one account to another, usually in order to settle a debt. This can be done electronically, by cheque, or by transferring funds from one account to another. In some cases, an account settlement may also involve the transfer of assets, such as property or shares. … Read more
In finance, a controller is a senior position responsible for the financial reporting of an organization. The controller is responsible for the accuracy and completeness of the organization’s financial statements, as well as ensuring that these statements comply with generally accepted accounting principles (GAAP). The controller may also be responsible for managing the organization’s financial … Read more
Intangible personal property is a type of personal property that does not have a physical form. It includes things like patents, copyrights, and trademarks. Intangible personal property is often very valuable, even though it cannot be seen or touched. What is the meaning of intangible items? Intangible items are items that lack physical form and … Read more
A non-interest-bearing current liability (NIBCL) is a current liability that does not accrue interest. This type of liability is typically used to finance the operations of a business. The most common examples of NIBCLs are accounts payable and taxes payable. NIBCLs are different from other types of current liabilities, such as loans and credit card … Read more
Underapplied overhead occurs when the total actual overhead incurred is less than the total applied overhead. This can happen when the overhead rate is applied to fewer units of production than were actually produced during the period. The amount of underapplied overhead is calculated by subtracting the total actual overhead from the total applied overhead. … Read more
The Estimated Recovery Value (ERV) is the value of an asset at the end of its useful life. This value is used to estimate the amount of money that can be recovered from the sale of the asset. The ERV is also used to estimate the amount of money that can be recovered from the … Read more
Batch-level activities are those accounting activities that are completed on a periodic basis, typically at the end of each accounting period. Activities at this level typically involve the recording and summarization of transactions, the preparation of financial statements, and the closing of books. Is product design a batch-level activity? Product design is not a batch-level … Read more
Net liquid assets are a company’s short-term assets minus its short-term liabilities. This metric is used to measure a company’s liquidity, which is the ability to pay its short-term obligations. A company’s short-term assets include cash, marketable securities, and accounts receivable. Short-term liabilities include accounts payable, accrued expenses, and short-term debt. Net liquid assets can … Read more
Administrative accounting is the process of collecting, recording, and managing financial information for an organization’s administrative purposes. This includes tracking an organization’s income and expenses, preparing financial statements, and managing payroll and accounts payable. Administrative accounting also encompasses budgeting and forecasting, and can be used to make decisions about where to allocate resources. What is … Read more
Reconciliation in Accounts: Definition, Purpose, and Types What is the reconciliation act? The reconciliation act is an act that is designed to reconcile the differences between the two sets of books that are maintained by a business. This act is usually performed at the end of the fiscal year. What are the various types of … Read more
