How are transactions entered in three column cash book?
A triple column cash book or three column Cash Book is one which consists of three separate columns on the debit side as well as credit side for recording...
How do you calculate predetermined overhead allocation rates based on direct labor hours direct labor costs and machine time?
To calculate the plantwide overhead rate, first divide total overhead by the number of direct labor hours used to find the overhead per labor hour. Next, ...
What are the importance of accounting concepts in business?
Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors...
What happens with selling cost when the sales revenue increases?
A change in demand affects your sales and impacts your variable costs. As your sales grow, your variable costs increase. As your sales fall, your variable...
What are the disadvantages of shares?
Disadvantages are dividend uncertainty, high risk, fluctuation in market price, limited control, residual claim etc. Equity share is looked at from differ...
What is the role of the external auditor?
An external auditor reviews the financial information of a company and reports on findings. The external auditor is responsible for investigating financia...
What is considered equipment in accounting?
Business Equipment Equipment is classified as a long-term asset and usually refers to items that will last and be used longer than a year. Equipment in a ...
What are the main differences between exchange traded markets and over the counter OTC markets for derivatives?
Exchange traded derivatives (ETD) are traded through central exchange with publicly visible prices. Over the Counter (OTC) derivatives are traded between ...
Can a corporate officer be held personally liable?
Typically, a corporate officer isn’t held personally liable, as long as his or her actions fall within the scope of their position and the parameters of t...
What are the features of a good algorithm?
The characteristics of a good algorithm are: Precision – the steps are precisely stated(defined). Uniqueness – results of each step are uniquely definedan...
