Budget and Interrelationship With CAFR

Budget and Interrelationship With CAFR

As detailed in the Management’s Discussion and Analysis (MD&A) of the State of Arizona GAO, the 2007 CAFR provides required supplementary information including budgetary comparison schedules for the general fund and each major special revenue fund, plus a reconciliation of the schedules of statutory and GAAP expenditures for the fiscal year. In addition, a budgetary expenditure comparison schedule for non-major special revenue funds is also provided.

The size of the budget and its interrelationship with the CAFR is that there is a very high relationship between the two. Read more

A Look at Cost Accounting Standards & Contingencies

A Look at Cost Accounting Standards & Contingencies

    Definition of Contingencies

      The US Financing Accounting Standards Board (FASB) Statement of Financial Accounting Standard No. 5 (SFAS No. 5 of 1975) and the more recent General Accepted Accounting Principles (GAAP) ASC 450 defines contingency as an existing condition, situation, or set of circumstances that involves uncertainty as to possible gains or loss. Read more

T Accounts: Examples & How They’re Used

T Accounts: Examples & How They're Used

    In accounting transactions and concepts that require multiple entries to record related transactions, it is sometimes necessary to prove the effects of the entries involved before they are finalized as such. This is where the usefulness of T accounts in accounting comes into focus, to serve as a simulation of the general ledger page where the debit and credit entries will be posted.

    Others have the misconception that T accounts are tools for proper recoding. Read more

Manitoba Accountants – Pricing Strategies For Your Business

Manitoba Accountants - Pricing Strategies For Your Business

One of the most important business decisions that can be, and often has to be, made is one regarding the pricing of a particular product or service, since this is what would differentiate a brand from competition. Here are a few tips regarding the various pricing strategies used by Manitoba accountants to give businesses a distinctive edge in the present business scenario.

High pricing strategies

These are basically of two types:

Creaming – This refers to selling a product at a higher price and making sufficient profit before new players come into the picture. Read more

The Importance of the Matching Principle in Accounting

The Importance of the Matching Principle in Accounting

    Where Did the Matching Principle Come From?

      The matching principle is part of Generally Accepted Accounting Principles (GAAP). The standards are developed and overseen by four main organizations. They are the Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), Finanal Accounting Standards Board (FASB) and Government Accounting Standards Board (GASB).

    The SEC was created by the federal government as a means of establishing standards for financial reporting. Read more

How Currency Trading Works

How Currency Trading Works

Almost everybody looking to make money online is interested in knowing how currency trading works. Well, currency trading, otherwise known as Forex, deals with the ability to sell and buy currencies online. It is the hugest financial market in the world, with a daily turnover of over $1.5 trillion.

As you may expect, the biggest players in the market are brokers, banks, financial institutions and even some private individuals. Read more

Value Equals Purchase Plus Usage

Value Equals Purchase Plus Usage

Companies in the Service Industry that offer and sell intangibles are appreciating the need to monitor and evaluate how we use their services after paying for them because it is only when we experience the value from using it that we will buy more. Long ago, their counterparts in the manufacturing, and most tangible sector, discovered that they would sell more when their products were used and not kept on the shelf. Read more

Typical Examples of Manufacturing Overhead Costs

Typical Examples of Manufacturing Overhead Costs

    Most examples of manufacturing overhead costs are known by various names, such as indirect manufacturing cost, factory burden, and factory overhead. They include all costs that go toward converting raw materials into a finished product, but do not include direct material or direct labor.

    Examples

    In essence, factory overhead costs arent directly incurred when producing a product but nonetheless have a direct impact on production costs, the value of the product, and by extension, how much profit is left after all expenses are covered. Read more