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Category Archives: Bookkeeping
Speaking of financial statements, it’s important that you take the time to review your financial statements on a regular basis. As an owner, you rely on their accuracy to make key management decisions. This can be particularly important for small business owners, who have less room for error. How are product costs reported in financial […]
However, this can be confusing since not all current assets and liabilities are tied to operations. For example, items such as marketable securities and short-term debt are not tied to operations and are included in investing and financing activities instead. Working capital is a basic accounting formula (current assets minus current liabilities) business owners use […]
This section provides the sum of the total authorized shares, the total number of shares outstanding, and the total floating shares. Total outstanding shares represent the number of shares of a company’s stock that are currently held by all its shareholders, including institutional investors, company insiders, and the public. The company has issued these shares, […]
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With a semi-monthly payroll, employees receive payment twice a month. Paychecks are distributed on fixed dates, say 1st and 15th, or 15th and 30th. Semi-monthly when compared to other pay frequencies, require less payroll processing as the pay periods are only 24 per year. Since some months have 30 days and others have 31 days, […]
Here’s how the different types of accounting transactions and balances affect the value of owner’s equity in a business. Owner’s equity is one of the three components of the accounting equation so understanding its basics is a key step for beginners who are learning accountancy. You want to maximize your business’s profits and minimize the […]
Sponsoring departments making service or honorarium payments to international visitors who are residents of tax treaty countries should arrange for in-person interviews for their visitors with Tax Services. If a visitor does not speak English, the sponsoring department should also arrange for an interpreter to be present at the interview. ITINs that have not been […]
We record this as an increase to the asset account Accounts Receivable and an increase to service revenue. During the month of February, Metro Corporation earned a total of $50,000 in revenue from clients who paid cash. Deferred rent is a liability account representing the difference between the cash paid for rent expense in a […]
This could indicate that the company has better collections, faster inventory turnover, or simply a better ability to pay down its debt. The trend is also more stable, with all the values being relatively close together and no sudden jumps or increases from year to year. An investor or analyst looking at this trend over […]
Contra assets decrease the balance of a fixed or capital asset, carrying a credit balance. Contra asset accounts include allowance for doubtful accounts and accumulated depreciation. Contra asset accounts are recorded with a credit balance that decreases the balance of an asset. A key example of contra liabilities includes discounts on notes or bonds payable. […]
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