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Accounting helps a business understand its financial position to be able to make informed decisions and manage risks. Accounting is like a powerful machine where you input raw data (figures) and get processed information (financial statements). The whole point is…
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This was disclosed, as required by GAAP, in the footnotes to the audited financial statements. Consistency also allows users to make meaningful comparisons between financial statements from different periods, helping them to better understand an entity’s financial performance and make…
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The operating section contains information about revenues and expenses of the principle business activities. The gross profit and the operating profit figures are calculated in the operating section of a multi-step income statement. All operating revenues are grouped at the…
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The resulting conclusions can set in motion plans of action that bear directly on the overall fate of the organization. Absorption costing is by GAAP because the product cost includes fixed overhead. It is not by GAAP because the fixed…
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Sign up for applications that will work seamlessly with your primary business software. Aside from its features, QuickBooks has a vast network of certified public accountants (CPAs), bookkeepers, and firms that offer accounting support through the QuickBooks ProAdvisor program. This…
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