If no direct connection to revenue can be established, the costs are recognized in the period they arise. For instance, office rent is recorded as an expense in the month it is paid, irrespective of the sales activities of that
Notes Payable Account on a Balance Sheet: What You Need to Know
The interest represents 8% of $10,000 for half of a year (January 1 through June 30). Note that since the 12% is an annual rate (for 12 months), it must be pro- rated for the number of months or days
Accounting for Consignment Inventory Definition, Treatment, Journal Entry, and Example
Income taxes are assessed on recognized revenue, so clear documentation and consistent reconciliation are essential to address discrepancies and support audits. For example, Company A (consignor) has made an agreement with Company B (consignee). On 01 January 202X, Consignor has