Accounting is an art of recording, classifying, analyzing and summarizing the financial statement to produce meaningful information and reports. Accounting is done with two methods as follows: Cash Basis accounting: Under the cash basis accounting all the cash receipts for the period are considered as revenue and all the cash payments for the period are considered as expenses and net income us calculated. Accrual Basis accounting: Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period. To Discuss: The Validity of the statement
Accounting is an art of recording, classifying, analyzing and summarizing the financial statement to produce meaningful information and reports. Accounting is done with two methods as follows: Cash Basis accounting: Under the cash basis accounting all the cash receipts for the period are considered as revenue and all the cash payments for the period are considered as expenses and net income us calculated. Accrual Basis accounting: Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period. To Discuss: The Validity of the statement
Solution Summary: The author explains that accounting is an art of recording, classifying, analyzing and summarizing the financial statement to produce meaningful information and reports.
Accounting is an art of recording, classifying, analyzing and summarizing the financial statement to produce meaningful information and reports.
Accounting is done with two methods as follows:
Cash Basis accounting:
Under the cash basis accounting all the cash receipts for the period are considered as revenue and all the cash payments for the period are considered as expenses and net income us calculated.
Accrual Basis accounting:
Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.
Bloomfield Manufacturing's budgeted variable overheads for a period amounted to $42,000. During this period, the company spent $40,500 on variable overheads. The company's level of production was expected to require 21,000 labor hours, but the actual amount of labor hours used was only 20,250 hours. What was the variable overhead expenditure variance for the period?
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