Accounting is an art of recording, classifying, analyzing and summarizing the financial statement to produce meaningful information and reports. Accounting is done with two methods as follows: Cash Basis accounting: Under the cash basis accounting all the cash receipts for the period are considered as revenue and all the cash payments for the period are considered as expenses and net income us calculated. Accrual Basis accounting: Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period. To Indicate: The treatment of employee vacation pay
Accounting is an art of recording, classifying, analyzing and summarizing the financial statement to produce meaningful information and reports. Accounting is done with two methods as follows: Cash Basis accounting: Under the cash basis accounting all the cash receipts for the period are considered as revenue and all the cash payments for the period are considered as expenses and net income us calculated. Accrual Basis accounting: Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period. To Indicate: The treatment of employee vacation pay
Solution Summary: The author explains that accounting is an art of recording, classifying, analyzing and summarizing the financial statement to produce meaningful information and reports.
Accounting is an art of recording, classifying, analyzing and summarizing the financial statement to produce meaningful information and reports.
Accounting is done with two methods as follows:
Cash Basis accounting:
Under the cash basis accounting all the cash receipts for the period are considered as revenue and all the cash payments for the period are considered as expenses and net income us calculated.
Accrual Basis accounting:
Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.
To match revenues and expenses properly, should the expense for employee vacation pay be recorded in the period during which the vacation privilege isearned or during the period in which the vacation is taken? Discuss.
Why must pay rate information be a part of an employee’s payroll file?
A. As a means of tracking time worked for overtime compensation purposesB. To ensure that the employee receives all compensation earnedC. As a means of ensuring pay equality among employeesD. To document satisfaction of court-ordered obligations
Can Employee's expenses (Unreimbursed) be itemized?
Can Federal income tax withheld from salary wages be deducted from AGI?
Can tuition, room, and board paid for college be itemized?