Integrated Accounting Systems Flashcards
Overtime Premium…
Is the extra amount paid at a higher rate for hours worked in excess of the working week.
Ledger accounts are debited for…
Purchases - Goods purchased for resale.
Expenses - Rent, wages, bills.
Assets - Land, building, computer, vehicle.
Ledger accounts are credited for…
Receivables - Revenue, income.
Liabilities - Loan, mortgage, overdraft.
Sales
The left side of the cash account…
Records cash received (Dr).
The right side of the cash account…
Record cash paid (Cr).
Net Wage =
Gross Wage - Deductions.
Overtime Premium is a Direct cost…
When is is a consequence of a specific customer request.
Overtime Premium is an Indirect cost…
For general circumstances.
Bonus Earnings are a Direct cost…
If they are paid on an individual task basis.
Bonus Earnings are an Indirect cost…
Is they are accumulated over time.
Idle Time…
Is always an Indirect cost.
Variances are recorded…
When they arise.
Price/Rate variances are recorded…
In the relevant control accounts.
Quantity variances are recorded…
In the Work in Progress account.
