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 about Marketing & Sales
A company accounts for goodwill impairment by testing the current value of its goodwill assets against its recorded value on an annual basis. If the value of the company's goodwill has fallen during the previous year, the company is considered to have a goodwill impairment. To account for this, the company must record the current, lower value of its goodwill on its balance sheet.Full Answer >
A marketing or core strategy is the portion of a marketing plan that describes the fastest or most efficient routes to increased sales. Methods listed in core strategies might include direct mail, pay-per-click advertising, social media development and coupons or promotions.Full Answer >
The total product concept is how companies and salespeople can analyze a product and market and sell it more effectively. The concept delineates a product using the following four dimensions: the generic, the expected, the augmented and the potential product dimension.Full Answer >
Create a logo by brainstorming potential logo designs, sketching out design ideas and creating a final logo design on the computer. Aim for the logo to be simple, memorable, clearly communicative and unique.Full Answer >