An income and expenditure account is a record showing debits and credits for an organization within a particular time period. Income and expenditure accounts are also referred to as profit and loss accounts. Generally, these accounts are credited with debits and credits, whether paid or not. As a rule, transactions of a capital nature, such as payments for vehicles or sales of machinery, as well as donations from a will, should not be included in this account.Know More
The difference between income and expenditure, whether surplus or deficiency, is transferred to a capital account. A capital account is record of money available for the daily operations of an organization. Income and expenditure accounts are popular with nonprofit organizations, such as clubs, hospitals, schools and charities. Donations, member subscriptions and entrance fees are among the items that appear on the income side of profit and loss accounts.
Items appearing on the expenditure side of the record include salaries, honorariums, rents, utility bills and car expenses. Data for generating an income and expenditure account comes from a receipt and payment account or from a trial balance. A trial balance is a record that shows the ending balance of a particular account at the close of a particular period.Learn more about Accounting
The role of a financial accountant is to provide financial analysis support to an organization by preparing its financial statements, such as the balance sheet and income statement. These professionals must keep up with the latest tax regulations and ensure the company pays its taxes on time and accurately. Moreover, they must ensure the company complies with the rules of generally accepted accounting principles, which are a set of standards and guidelines for the accounting industry in the United States.Full Answer >
People need accounting because it keeps a record of cashflow, produces financial reports and monitors business expenses of an organization, according to the Houston Chronicle. Accounting helps owners make vital decisions to help their companies thrive.Full Answer >
The beyond budgeting movement in business management promotes a lesser emphasis on top-down command-and-control and instead places a greater focus on front-line decision-making, decentralized and highly adaptive localized management units, client satisfaction, transparency and the fostering of common goals throughout the organization. Strict adherence to a traditional annual budget plan is viewed as a potential liability because it can distract or prohibit managers from being effectively responsive to changing developments in a highly dynamic environment. A primary goal is to focus on increasing value to the customer rather than hitting number targets on a budget plan.Full Answer >
Factors that impact pricing decisions include internal factors like the marketing objectives for the organization, and external factors such as the nature of the market, competition and demand. Marketing will determine a strategy for the product, which greatly impacts the proposed pricing for a product.Full Answer >