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What does Reconciling an Account Involve?

What does Reconciling an Account Involve

In this post, we are going to discuss what does reconciling an account involve. Reconciliation is an accounting process in which two sets of records are compared to ensure that the results are correct and consistent. Reconciliation also guarantees that the general ledger accounts are correct, consistent, and complete. Nevertheless, in contrast to business, reconciliation can…

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Which Asset Cannot be Depreciated?

Which Asset Cannot be Depreciated

In this article, we will discuss which asset cannot be depreciated. Depreciable and non-depreciable assets are two distinct types that must be understood to accurately evaluate a company’s earnings and assets. What is Depreciation Exactly? Depreciation is a non-cash business expense that is computed and allocated throughout the asset’s useful life. Depreciation allows any business to…

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Which Type of Account Typically has Low Liquidity?

Which Type of Account Typically has Low Liquidity

Here, we will explain which type of account has low liquidity and also let you know either you should invest in such low liquidity account or not. In finance, liquidity refers to the speed with which any asset can be converted into physical money. Stocks, bonds, and marketable securities, for example, are liquid assets because…

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Which Account Does Not Appear On The Balance Sheet?

Which Account Does Not Appear On The Balance Sheet

Understanding which account does not appear on the balance sheet is crucial to your company’s accounting. Assets or liabilities that do not display on a firm’s balance sheet are referred to as off-balance sheet (OBS). The OBS accounting method is utilized in various situations. Still, it is particularly useful for shielding a firm’s financial statements…

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How to Open a Bank Account that no Creditor can Touch?

How to Open a Bank Account that no Creditor can Touch

If you wish to know how to open a bank account that your creditors cannot touch, this article is for you. While there is no guarantee that creditors will not collect your assets once they are discovered, there are several strategies to preserve your assets. So, How to Open a Bank Account that no Creditor can…

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What is a Master Budget in Accounting?

Master Budget

A master budget combines several smaller budgets into a single larger budget to better understand your company’s financial situation. A master budget combines a financial and operating budget. It is usually generated for the coming year, but it can also help create a strategic plan for your company. Managing various budgets is a time-consuming task…

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Net Operating Assets (NOA): Definition, Calculation, and Usage

Net Operating Assets

A company’s net operating assets are its operations-related assets minus its operations-related liabilities. To put it another way, net operational assets are: +The total assets of a company – All liabilities – All financial assets + All financial liabilities = Net operating assets The formula for calculating NOA aids firms in determining how much money…

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