What Are Accruals? How Accrual Accounting Works, With Examples
The goal is to ensure that the balances of both the additions and subtractions are equal. It is usually done by creating a journal of all the transactions on the accounting system. A simple example of an accrual would be for some work that was completed but not...
Read morePerpetual Inventory Methods and Formulas
Small merchandising businesses can track their inventory with an inventory management approach known as the periodic inventory system. Inventory shrinkage happens when there is a discrepancy between the actual stock and the inventory list. That’s because it takes the inventory at the beginning of the reporting period and at...
Read moreThe Formula to Calculate Gross Profit in Periodic Inventory Systems Chron com
In a periodic inventory system, the cost of goods sold and ending inventory are determined periodically, often at the end of a financial period. LIFO is a cost flow assumption technique that considers inventory movement so that the most recently purchased things are sold first. Like the FIFO periodic...
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