When filing federal income tax, taxpayers need to choose to either take the standard deduction or itemize deductions. This decision will be different for everyone, but most Americans choose the standard deduction. If you are given the tax rate, you
The amount of the commitment is the number of payrolls multiplied by the employee’s periodic earnings with an adjustment for partial pay periods at the end of the commitment period. Accounting for budgeted versus actual events offers a useful measure
In an equilibrium state, markets creating negative externalities of production will overproduce that good. As a result, the socially optimal production level would be lower than that observed. Relying on one strategy may only work if you have the market
It also comes with a handy “Notes on Preparation” box that gives you a step-by-step tutorial on working with this template specifically. When you hover over the column items, it also gives you more instructions for filling it out. Alan
The format of the balance sheet is not mandated by accounting standards, but rather by customary usage. The two most common formats are the vertical balance sheet and the horizontal balance sheet . For small privately-held businesses, the balance sheet
The IRS allows businesses to use the straight-line method to write off certain business expenses under the Modified Accelerated Cost Recovery System . When it comes to calculating depreciation with the straight-line method, you must refer to the IRS’s seven
There are a few different ways you could structure a bookkeeping business. However, even if you already have bookkeeping skills, you can benefit from a course that can teach you how to start your own business and find clients. As
Many smaller businesses begin with bookkeeping services, and then add other accounting services as they grow. Although the terms are sometimes used interchangeably because bookkeepers and accountants share common goals, they actually refer to two different kinds of financial services.
Payments to insurance companies or contractors are common prepaid expenses that count towards current assets. The ratio of current assets to current liabilities is called the current ratio and is used to determine a company’s ability to fulfill short-term obligations.
Private loans usually have higher interest rates, and federal loans are issued at subsidized rates. Amortization also applies to asset balances, such as discount on notes receivable, deferred charges, and some intangible assets. Capitalization is an accounting method in which