Bookkeeping

Overhead includes all other expenses tied to making goods; think rent for a factory or power bills. Imagine a factory floor with parts scattered everywhere — each component represents money spent but not yet earning its keep until finished. A high rate indicates that the company’s manufacturing operations may not be utilizing the resources available …

1 6 The Statement of Cost of Goods Manufactured Managerial Accounting Read More »

There are actually some benefits to have checks outstanding as well, though. Writing checks makes it possible for organizations and individuals to make payments without requiring instantaneous cash or electronic transactions to be completed. Checks that linger only buy the company more time to gather up enough resources for payment to clear if more time …

What Is an Outstanding Check? Outstanding Checks 101 Read More »

In some cases, both parties can use a non-arm’s length transaction to defraud other parties involved in the transaction, such as a mortgage lender. However, in situations where the parties are not strangers, which are referred to as “non-arm’s length transactions,” it is less likely that the price offered and/or obtained for the property is …

Arm’s length principle Wikipedia Read More »

In some cases, both parties can use a non-arm’s length transaction to defraud other parties involved in the transaction, such as a mortgage lender. However, in situations where the parties are not strangers, which are referred to as “non-arm’s length transactions,” it is less likely that the price offered and/or obtained for the property is …

Arm’s length principle Wikipedia Read More »