Bookkeeping

Abnormal use of accruals, for example, might flag as suspicious accruals or as smoothing activity in fraud detection software. If a company expects to suffer reduced earnings in the near future, it might delay earnings to ensure lower taxes and thus higher liquidity when difficult times arrive and access to borrowing becomes more difficult. Thus, […]

For big industries like trading or manufacturing, other journals, called special journals are necessary. Their purpose is to group and record transactions of a specific type. Usually, though, special journals record the most recurring transactions within a company. In accounting language, this is a transaction that simultaneously affects two accounts. It captures details such as