Adjusting transactions that involve accrued expenses or revenues that have not been entered into the company accounts for the correct accounting period often need to be reversed. These transactions can cause problems when they are entered into the accounts twice, initially as adjusted entries and then in the following accounting period. These entries have to be reversed in order to remove the adjusted accrual entries.Know More
Entries that reverse transactions must be dated on the first day of the accounting period that follows the period when the accrual entries are made. The reverse entries ensure that accrued amounts that belong in the previous period do not affect the accounting record for the next period. According to the Houston Chronicle, the major advantage of reversing entries is that they offset accrued expenses in the period when they are paid. This revision ensures that ledger accounts balance, otherwise transactions which are recognized twice cause an error in the ledger accounts.
Manually reversing entries allows the accountant to post reverse entries to the ledger accounts at any time of the month when there is a need to balance the ledger. Automatic reversing entries are typically made by accounting software at the end of the month.Learn more in Marketing & Sales
The purpose of closing entries is to transfer financial data from temporary accounts to the balance sheet or income statement. As part of this, the temporary accounts are balanced to zero so that data is not carried over to the next accounting period.Full Answer >
The value of mercantilism in Western Europe from the 16th through 18th centuries includes advancing a monetary system based on gold and silver currency and engaging in trade with nations further away. The rise of mercantilism in Europe marked a shift from an agricultural economy, to an economy based on trade and production of consumer goods. Nations engaging in mercantilism sought reduction of imports and instead promoted production of goods and services internally, stimulating national economies.Full Answer >
Open tendering is a bidding process that is open to all qualified bidders. Often called competitive bidding, open tendering promotes competitive bids from all interested bidders. The bid process is advertised with specific criteria and qualifications noted, and the lowest bidder is accepted without the need for negotiations.Full Answer >
To stop telemarketing calls, use the website that the Federal Communications Commission has set up to protect consumers from unwanted intrusions. Adding your number to the Do Not Call list means that telemarketers face financial penalties if they keep trying to reach you after the deadline has expired.Full Answer >