Category Archives: Bookkeeping

Closing Entries Using Income Summary

Closing entries are journal entries used to empty temporary accounts at the end of a reporting period and transfer their balances into permanent accounts. Temporary accounts are used to accumulate income statement activity during a reporting period. The use of closing entries resets the temporary accounts to begin accumulating new transactions in the next […]

Cash Flow: Definition, Uses and How to Calculate

The time period over which cash flow is tracked is usually a standard reporting period, such as a month, quarter, or year. A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows that a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that […]

Generally Accepted Accounting Principles United States Wikipedia

For example, banks operate using different accounting and financial reporting methods than those used by retail businesses. The FASB issues an officially endorsed, regularly updated compendium of principles known as the FASB Accounting Standards Codification. The compendium includes standards based on the best practices previously established by the APB. There are templates you can use […]