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Therefore, the traditional ending balances in the revenue type of account are credit balances. Asset accounts usually have debit balances while liabilities and owner’s or stockholders’ equity usually have credit balances. When a company provides services for cash, its asset…
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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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Before calculating the overhead rate, you first need to identify which allocation measure to use. An allocation measure is something that you use to measure your total overall costs. However, the actual cost of fixed overhead that incurs in the…
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