An adjunct account is an account that adds to the value another account without impacting the balance in the main account. The combination of the balance in the main account and the balance in the...
Category: Financial Accounting
What is the Difference Between Permanent and Temporary Accounts?
In accounting, Permanent accounts carry a balance from one month to the next. Temporary accounts are zeroed out at the end of each month. Permanent accounts are the balance sheet accounts, Assets,...
Petty Cash is a small amount of funds set aside to cover incidental expenses such as postage, office supplies, or employee reimbursements. Petty Cash is an Asset. The purpose of Petty Cash is to...
What is the International Accounting Standards Board (IASB)?
In the United States our financial accounting standards are issued by the Financial Accounting Standards Board (FASB). The international business community has its own version called International...
Cash Over and Short is an income statement account used to track differences in cash collections from what is expected and what is actual. It is used in businesses that use cash in day-to-day...
The statement of cash flows is a financial statement that shows how a company's cash balance changes over time. This statement is divided into three sections: cash flows from operating activities,...