What is Sales Volume?
Sales Volume is the quantity or number of goods sold or services sold in the normal operations of a company in a specified period. …
Accounting
What are Revenue Variances?
Revenue variances are used to measure the difference between expected and actual sales. This information is needed to determine the success of an organization’s selling…
What is Percentage of Receivables Method?
The percentage of receivables method is used to derive the bad debt percentage that a business expects to experience. The technique is used to populate…
What is an Accounting Convention?
Definition: Accounting Convention is a guidelines that arise from the practical application of accounting principles. An accounting convention is not a legally-binding practice; rather, it…
What is Bad Debt Recovery?
A bad debt recovery is a payment received after it has been designated as un-collectible. This may occur after legal action has been taken to…
Mathematical Problem: Aging of Accounts Receivable Method
Example: The company uses the Aging Method to calculate bad debts. The company produced the following aging schedule on December 31, 2013: Allowance for Doubtful…
How to Calculate Bad Debt Under the Allowance Method?
Percentage of Sales Method Example: The company estimates bad debt based on the percentage of sales method. Sales for the fiscal year ended December 31,…
What does a CPA do?
A CPA is a Certified Public Accountant, and is engaged in a number of advisory roles for his or her clients. These roles include the…
What is the Bookkeeping Equation?
The bookkeeping equation for a sole proprietorship is assets = liabilities + owner’s equity. The bookkeeping equation for a corporation is assets = liabilities +…
What is Return on Working Capital
The return on working capital ratio compares the earnings for a measurement period to the related amount of working capital. This measure gives the user…
Load More