Parts of an account for gains and losses, part 1

The first and most important part of an account for gains and losses are reporting of revenues from the sales line. Companies must be consistent from year to year that when they include sales. For some companies, the timing of recognition of revenue from the sale of a major problem, especially when the final acceptance by the customer is dependent on tests, or other conditions that must be met. For example, when you report an advertising agency sales revenues for a campaign as they prepared for her customer? When the work was completed and sent to the client for approval? When the client accepts? When ads appear in the media? And when billing is complete? These are issues that a company must decide for the reporting of sales revenue, and they must be consistent each year and time for reporting on the financial statements should be noted.

The following line in the income statement is the cost of goods sold. There are three methods for reporting costs cost of goods sold. One is called "first in, first out" (FIFO). Another is the "last check-in/last-out (LIFO) method, and finally is the average cost method. SOLD the cost is a great record in an income statement and how it can significantly affect reported reported line.

Other items to a reduction in the profit and loss account. A company should regularly inspect inventories carefully to identify the possible losses arising from theft, damage or deterioration, and apply the lowest cost or market (LCM) method. Bad debt is also an important part of the profit and loss account. Bad debt is owed to a company for customers by credit institutions (customer ledger purchased) but do not have to pay. Again, the timing of when the bad debt being reported is of crucial importance. Sign it before or after each collection efforts are exhausted?

http://weddingartpro.blogspot.com
http://stevenwang78.blogspot.com
http://technologicalarticles.blogspot.com
http://designertube11.blogspot.com
http://softwarezone11blogspot.com
http://melodyworld07.blogspot.com
http://itworld7.blogspot.com
http://itstore1.blogspot.com
http://supertube1.blogspot.com