When There Are Multiple Support Departments Within an Organization, It

question 51

Essay

When there are multiple support departments within an organization, it is common to use journal entries to transfer-in costs from one department to another. What are some of the points to remember about these costs?

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Definitions:

Company Center

Likely a feature or section within business or accounting software that provides an overview or management tools for company information and operations.

Temporary Accounts

Accounts in accounting that are closed at the end of the accounting period and include revenues, expenses, and dividends accounts.

Accounting Period

An accounting period is a specific time span during which financial activities are recorded and compiled into financial statements.

Permanent Accounts

Accounts that carry their ending balances over to the next accounting period, such as assets, liabilities, and equity accounts.