Bookkeeping News

• What is carriage inwards? May 22, 2013
  Carriage inwards refers to the transportation costs associated with the purchase of merchandise or other assets. The buyer is responsible for the cost of carriage inwards when it buys items and the prices are stated as being FOB shipping point. Carriage inwards is also known as freight-in or transportation-in. When goods or merchandise are purchased […]
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• What are the limitations of the balance sheet? May 16, 2013
  One limitation of the balance sheet is that only the assets acquired in transactions can be included. Therefore, some of a company’s most valuable assets will not be reported on the balance sheet. For example, assume that a company developed an internet business that now attracts millions of visitors each day and has $10 million […]
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• What does drop ship mean? May 15, 2013
  One example of drop ship is a manufacturer shipping goods directly to one of its customers’ customer (instead of delivering the goods to the customer that placed the order with the manufacturer). The following illustrates the concept of drop ship, drop shipping or a drop shipment. Assume that XYZ Distributors Inc (XYZ) sells only the […]
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• What is a blank endorsement? May 14, 2013
  In the case of a check payable to John Smith (the payee), a blank endorsement would be the signature of John Smith on the back side of the check without any other words above or below his signature. A blank endorsement is considered to be risky because the endorser is not restricting the check (or […]
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• What is a blank check? May 9, 2013
  A blank check often refers to a check that has been signed by an authorized check signer before the other information (date, payee, amount) has been entered on the check. For instance, a small business owner may sign three blank checks before leaving for a seven day vacation. Basically the owner is trusting that the […]
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