"Where Everyone Has an MBA"
Tel: (612) 246-4616
Tel: (612) 246-4616
ARTICLES OF INCORPORATION is the primary legal document of a corporation; they serve as a corporations constitution. The articles are filed with the state government to begin corporate existence. The articles contain basic information on the corporation as required by state law.
DIRECT JOURNAL PAYMENT is a payment that is recognized that is not included in the Accounts Receivable ledger, e.g. a double payment on a mortgage that has a monthly payment due and payable will cause a split-payment posting: one in the Accounts Receivable ledger for one half of the payment (principal and interest that is invoiced), with the other half of the payment being posted to the Long Term Loan ledger as a direct journal payment.
POSITIVE ACCOUNTING THEORY is where theorists tend to explain why some accounting practices are more popular than others (e.g., because they increase management compensation). They tend to support their conclusions with inductive theory and empirical evidence as opposed to deductive methods. Generally avoid advocacy of one accounting rule as being better or worse than its alternatives. Positivists are inspired by anecdotal evidence, but anecdotal evidence is never permitted without more rigorous and controlled scientific investigation.
Enter a term, then click the entry you would like to view.