July 2022

When you’re talking accounting and business, consignment refers to the consignment sale process. This process is specialized, and it requires its own accounting method. In the consignment process, goods are left with a third-party by a manufacturer or provider. From the consignee’s perspective, there is no need to record the consigned inventory, since it is …

Accounting for Consignment Inventory Definition, Treatment, Journal Entry, and Example Read More »

The T-account summary for Printing Plus after closing entries are journalized is presented in Figure 5.7. Notice that the Income Summary account is now zero and is ready for use in the next period. The Retained Earnings account balance is currently a credit of $4,665. Closing Entries It contains all the company’s revenues and expenses …

How To Close the Dividends Account Read More »

There is also a book value used by accountants to value the assets owned by a company. This differs from the book value for investors because it is only used internally for managerial accounting purposes. While Book Value Per Share can be a helpful indicator of a company’s tangible net assets, it has several limitations …

Book Value Per Share BVPS: Definition, Calculation & Importance Read More »