What is the difference between the accounts of the service companies and commercial companies?
The difference between commercial firms and
comparative service service companies business companies
source of revenue to provide services to others sale of goods
expenses include expenses paid for the services of others, including the cost of goods sold expenses
by 2 variations to the examples of accounting firms, law offices and retail stores
2 What is the difference between the periodic inventory system and the continuous inventory?
The difference between the periodic inventory system inventory system
inventory continuous inventory in comparison, the periodic continuing
objective of the inventory process the extraction cost of goods for the last time to extract the cost of sales and therefore know the net income at the end of the period in conformity with the actual balance of the stock with the balance notebook
types of goods this system is applied in companies with multiple classes and low value this system is applied in companies that have a few items and expensive
to achieve control is difficult to achieve constant oversight, because the process of inventory does not only take place once a year to achieve effective control of the continued existence of the special account of the goods,
easy to use, easy to use when logging operations of the cargo that was difficult to use and registration of cargo operations when using the manual system in registration, but if the program provides appropriate accounting bar code system It becomes easy to use
to determine the cost of sales could not determine the cost of sales only when the inventory, and inventory, as this system is once a year can determine the cost of sales after each sale occur
What is the effect of the error in determining the cost of inventory at the end of the Fixed Term?
The impact of fault in determining the cost of inventory
error type impact on the cost of sales impact on net income
inflate the cost of inventory for the actual value of the lead to a reduction in the cost of sales leads to inflated profits and
reduce the cost of inventory for the actual value of the lead to inflate the cost of sales will lead to a reduction in profits