Bookkeeping

Reasons why the bank balance differs from the book balance

To the bank, however, a company’s checking account balance is a liability rather than an asset. Therefore, from the bank’s perspective, the terms debit and credit are correctly applied to the memoranda. Suppose that at the end of May, according to your company’s ledger (your “books”), your company has a balance of $10,000 in its …

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What Is Management Accounting?

Management accounting is the process of analyzing information about a company’s finances, interpreting it and using it to make decisions about the business. This process happens at multiple levels of an organization, but it generally involves managers of various teams and departments creating budgets, forecasts and schedules, then presenting to senior management accounting management for …

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