The difference between ledger balance and memo balance is essential to understand to avoid incurring unnecessary overdraft fees. Banks charge enormous penalties to customers who draw against ...

In double-entry bookkeeping, every time you spend or receive money, you have to record it twice. For example, if you spend $5,000 cash to buy more inventory, you'd record that $5,000 in both the Cash ...

The accounting cycle tracks a transaction until it’s added to your company’s financial statement. Follow this eight-step ...

The first five segments are known as the "Account String." Therefore, an Accounting Key is comprised of an Account String plus an Object Code. The first five segments of the accounting key are also ...

Reem Heakal is a writer who became an Investopedia contributor in 2003. Her writing covers a wide array of large-scale financial topics. Erika Rasure is globally-recognized as a leading consumer ...