Explain the Difference Between Method of Data Collection and Research

question 8

Essay

Explain the difference between method of data collection and research method.

Identify the components and importance of internal control over cash receipts and payments.

Appreciate the complexities in accounting for sales returns, allowances, and discounts.

Learn the methodologies and implications of estimating and accounting for bad debts.

Understand the classification and reporting of sales returns and allowances in financial statements.

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Definitions:

Depreciation

The systematic allocation of the diminution in the value of a tangible asset over its useful life.

General Journal

A comprehensive record of all financial transactions of a company, used to make entries not suited for specific ledgers.

Posting

In accounting, posting refers to the process of transferring entries from the journal into their respective accounts in the ledger, for the purpose of organizing and summarizing financial information.

Journal

A detailed record where all financial transactions of a business are initially recorded before transfer to accounts in the general ledger.