What does allocated mean in accounting?

allocated accounts are accounts that have been set aside for a specific purpose. In a general ledger, an allocated account is one that is separate from the general ledger. The account is used to track and report on transactions that are connected to its purpose. For instance, a cost account is used to track expenses that are directly related to a project. A fixed asset account is another example of an allocated account.

What does the word alloted mean in accounting?

A budget is a financial plan for the coming year. It includes all the expenses that you need to cover, such as business costs, living expenses, and investments. When you create a budget, you can set aside money for specific expenses. One way to do this is to set aside money for fixed expenses, like payroll and utility bills, and variable expenses, like marketing and advertising. When you set aside money for a specific expense, you can track how much you’ve spent and how much

What does the word allocated mean in the accounting process?

It refers to a portion of the total cost of a single item that is assigned to a particular period of time. This cost is assigned to the particular period, regardless of how much is used in that period. For example, the cost of a new car might be $30,000. Of that cost, $15,000 might be assigned to the first year, and $15,000 to the second year. The remaining $30,000 would be capitalized as part of the asset base

What does the word alloted mean in the accounting process?

The word “allotted” is not used as often as you might think. It is used in accounting when a fixed amount of money is set aside for an expense. For example, you might have an allotted amount of $500 for supplies to repair your machine. When you run out of money for supplies, you will have to replace that part and any aftermarket equivalent will not suffice. That $500 is allotted to repairing the machine.

What does the word allocated mean in accounting?

Assigning an account to a specific expense means that the account will only use that account to track that expense for you. For example, in your tax return you have to declare the amount of money you spent on food in a given year. You might choose to use the account “Food” as the account to use, which means that you won’t have to track any other expenses in that account.