Why Do Businesses Use Petty Cash Funds? 7 Reasons You Should Know

A business can’t vouch and account for every small expense like a cup of coffee, taxi fare, smaller office supplies, etc. On the other hand, these expenses are unavoidable and must be carried out by the businesses. Therefore, a convenient, fair, and easily manageable method of vouching for small expenditures is necessary. Many small businesses …

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Step by Step on How to Records Used Office Supplies Journal Entry

What are Office Supplies? Office supplies refer to items that companies use within office use. They include small stationery and similar materials that are crucial for administrative purposes. Usually, these materials differ in their usage from other goods or assets. Essentially, office supplies include items that companies regularly use for administrative work. There is no …

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How to Record Journal Entry of Office Supplies Bought on Credit?

Companies use various goods and products within their operations. These goods, known as assets, are crucial in helping companies generate revenues. Usually, companies classify assets based on how long they expect to use them. Furthermore, they distribute the cost of some of those assets under depreciation. Other resources may get expensed out directly without the …

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Step by Step on How to Records Vacation Benefits Journal Entry With Example

Employees are one of the most crucial parts of the operations of most companies. They include individuals who provide services to a company in exchange for compensation. Usually, they work throughout the year and help in achieving organizational goals. Every once in a while, employees will also take time off work. This time off may …

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How to Record Bond Interest Expense Journal Entry? Example and Explanation

A bond is a debt instrument that companies use to collect funds from creditors. This instrument does not require companies to apply for loans from financial institutions. Instead, companies can issue them of their own will and collect funds from any entity. While this entity may include financial institutions, it can also consist of individuals, …

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What Are the 3 Important Types of Monetary Systems?

The economy is a broad term that refers to an area that involves various economic activities. These activities can range from production, distribution, and trade. On top of that, the economy also includes consuming goods and services by participants within that area. Usually, these activities are interrelated and impact how the economy operates. However, the …

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What are the Four Types of Organizational Change?

Change is inevitable in the modern world. Every organization changes at some point in its lifecycle. Usually, this process is crucial to stay relevant and maintain viability. Change is also critical to help organizations grow and scale beyond their current levels. This change can come in many forms. However, these usually come with similar objectives …

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