by Accountant Town | Aug 16, 2019 | Reporting
Accounting Principles – Profit and Loss The profit and loss account, as a ledger account, is a summary of all the outlay and income. On the debit side are collected all the charges incurred in making the profit during a given period; on the credit side are...
by Accountant Town | Aug 16, 2019 | Income Statement
Accounting Principles – Cost of Sales The cost of sales may be generally divided into .three elements, namely: materials and supplies, labor, and manufacturing overhead. This group corresponds to the expense-of-operation group in organizations other than a...
by Accountant Town | Aug 16, 2019 | Income Statement
Accounting Principles – Gross Profit Gross profit on sales forms the subject of considerable discussion in accounting. It is obtained by deducting the cost of sales from the income from sales. It is the first, or prime, profit obtained by placing against the...
by Accountant Town | Aug 16, 2019 | Income Statement
Accounting Principles – Selling Expenses This group comprises the expenses relating to the sales department, advertising, and such miscellaneous expense as entertaining customers. The sales department expenses may be divided into those having to do with the...
by Accountant Town | Aug 16, 2019 | Income Statement
Accounting Principles – Administrative Expense The principal items making up this group are salaries of officers, salaries of clerks (keeping general records), directors’ fees, printing and stationery, postage, telephone and telegraph, traveling of officers and...
