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
Income from continuing operations is ongoing earnings from normal business activity. It is what a company can expect from future earnings, such as if a company plans to continue to produce shoelaces and buttons but no longer zippers, earnings from the zippers is not calculated as income from continuing operations.Full Answer >
In business, accountants review financial records to ensure their accuracy and prepare documentation in case the organization is audited. The accounting team also prepares taxes and ensures that they are filed on time.Full Answer >
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 >
CareersinAudit.com explains that internal auditors work within an organization and report to the firm's audit committee and/or directors, while external auditors are independent of the company they audit and report to its shareholders. Their appointment, objectives and responsibilities are the key differences between internal and external auditors.Full Answer >