Last week’s poll: introductory financial accounting

Last week I ran a poll on Twitter: https://twitter.com/AccountingJenn/status/1096944010034319360 I asked participants to have one of two qualifications: a bachelor's degree in accounting, or a CPA license. The question read: "Has anybody ever told you that they wished they could have pursued a degree in accounting, but they couldn't pass the introductory financial accounting course?" … Continue reading Last week’s poll: introductory financial accounting

Is bookkeeping taught in financial accounting courses?

Sort of but not really. That's probably not a very satisfying answer so let me explain. Financial accounting courses are not bookkeeping training per se. They are preparation for more advanced courses such as Intermediate Accounting. On the other hand, in my experience solid bookkeeping training (or experience) is excellent preparation for an introductory financial … Continue reading Is bookkeeping taught in financial accounting courses?

Accounting Today quoted from my post about Intuit

Very pleased to see that my blog post about Intuit's entry into the bookkeeping service market was quoted in Accounting Today: Jennifer Johnson of Ledger Light proclaimed in a blog post, “I guess Intuit has finally admitted that QuickBooks isn’t easy for non-bookkeepers to use.” She wrote, "My observation is that small business owners purchase [QuickBooks], figure out … Continue reading Accounting Today quoted from my post about Intuit

COGS equation: calculating cost of goods sold

Let’s review the traditional cogs equation. It’s very easy to understand. I call this the old-fashioned way to compute cogs since it's not the formula used by modern accounting software such as QuickBooks, which relies on the perpetual inventory system. Even though it seems old fashioned, it's a good formula to memorize. The cogs equation's … Continue reading COGS equation: calculating cost of goods sold

What does Other Comprehensive Income do?

It makes sense to think of the OCI statement as sort of like a reconciliation statement. It accounts for the difference between the FMV reporting and the amortized cost reporting on the two financial statements. But off the top of my head, there is something inconsistent about this. The two most important financial statements used by large firms and investors are required to be reported on different bases.