By reflecting the true health and value of assets, liabilities, and equity, they support a realistic assessment of financial standing. In accounting, achieving accuracy and clarity is essential, and one key concept that helps with this is the contra account. While the term may sound technical, a contra account is simply a tool that enhances […]
An equal split will artificially deflate or inflate profits on one product or the other. To handle this on the business side, there are usually pricing matrices that work backwards from the end products to establish costing for reporting purposes. Failure to comply with these requirements can result in fines, penalties, and legal issues. By […]
The ratio is also useful for determining the profits that will arise from various sales levels (see the following example). However, ink pen production will be impossible without the manufacturing machine which comes at a fixed cost of $10,000. This cost of the machine represents a fixed cost (and not a variable cost) as its […]
When financial activities or business events occur, transactions are recorded in the books and included in the financial statements. Types of accounting periods for recording transactions include monthly and annually. The next step is to record your financial transactions as journal entries in your accounting software or ledger. Ready to save time and money? Missing […]
Contents: Enter any keyword and we will start making logos for you Logo Only Getting the Most Out of Your Accounting Logo Design With typefaces, serif fonts have a conservative, refined look, while sans-serif fonts look modern, sleek, and simple. Select a typeface that fits your brand, but avoid playful fonts, which may make your […]
Content How salvage value is determined Method Of Depreciation Find similar assets in the marketplace What Is an Asset’s Salvage Value? Find the depreciable value What happens when there is a change in a depreciable asset’s salvage value? How to Calculate Salvage Value (Step-by-Step) With a large number of manufacturing businesses relying on their machinery […]
Content Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials Deferred Rent Asset or Liability Create a bank account for each property Example: Straight-line rent expense calculation Rent Expense Explained and an Example of Straight-Line Rent under US GAAP For companies, location is everything, especially for real estate and retail companies. […]
Below is a short video tutorial on Earnings Before Interest, Taxes, Depreciation, and Amortization. The short lesson will cover various ways to calculate it and provide some simple examples to work through. Some categories, such as depreciation, are governed by strict rules. For example, one business might record an employee’s wages or even rent in […]
Content Does Wave work with PayPal? Wave Accounting Deciding Factors Does Wave do accrual-basis or cash-basis accounting? You’re our first priority.Every time. Wave Accounting is a free, intuitive cloud-based software application used to easily track business income and expenses. Designed for small business owners, Wave is a platform that lets users quickly get started organizing […]
Content How do I write a sales invoice? Unpaid Invoices: A Simple Guide For Freelancers & SMEs Difference Between an Invoice vs a Receipt [with Examples] How to Create a Sales Invoice What does an invoice include? They are very descriptive and include information about both parties involved in the transaction, while bills generally don’t […]