Imagine a world where financial statements always reflected the current state of affairs, where there was no need for last-minute adjustments to balance the books. Sounds too good to be true. Today we’re diving into the realm of accounting and uncovering a fascinating question: which Account would usually not require an adjusting entry? Yes, you…

Imagine you work hard to save money for your future, only to discover that your savings account is earning you next to nothing. It may sound frustrating, but the truth is that not all savings accounts are created equal. Some will make you significant interest, while others will cost you money in the long run.…

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…

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…

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…

Are you concerned about what happens if my stimulus check goes to a closed account? Millions of suitable and eligible Americans are receiving stimulus checks from the government, which means you can receive up to $1,400. Your household income determines your stimulus payment amount and the people dependent on you listed as per your tax forms.…

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…

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…

In this article, we are going to discuss temporary accounts and all the important aspects related to it. In accounting, temporary accounts are used to record financial transactions for a particular accounting period. All temporary account balances must be moved to permanent accounts at the end of the time. So, What is a Temporary Account?…

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…