Manual accounting system is a system in which someone performs each of the steps in the accounting cycle by hand.
For example, someone manually enters each accounting transaction in the journal and manually posts each to the ledger. Other manual computations must be made to obtain ledger account balances and to prepare a trial balance and financial statements.
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- Credit memorandum
Sometimes a depositor asks the bank to collect its notes receivable. In such a case, the bank will credit the depositor’s account for the cash proceeds of the note.
Partnership is an association of two or more persons to carry on as co-owners of a business for profit. In most respects a partnership is like a proprietorship except that...
- Correcting entries
Correcting entries refer to entries to correct errors made in recording transactions. Unfortunately, errors may occur in the recording process.
- Contribution margin ratio
Some managers prefer to use a contribution margin ratio in CVP analysis. The contribution margin ratio is the contribution margin per unit divided by the unit selling price.
- Additional paid-in capital
Additional paid-in capital includes the excess of amounts paid in over par or stated value and paid in capital from treasury stock.
- Cost reconciliation schedule
Cost reconciliation schedule is a schedule that shows that the total costs accounted for equal the total costs to be accounted for equal the total costs to be accounted for.
- Earnings per share (EPS)
Earnings per share (EPS) is a convenient measure of earnings which indicates the net income earned by each share of outstanding common stock.