Real, Personal and NominalIn a nutshell, nominal accounts are any revenue and expense accounts that a company has. At the end of each accounting period, nominal account balances are zeroed out so that these accounts can begin the next accounting peri... Read more
Business Startup Costs: It’s in the DetailsFor a company to record advertising expenses as an asset, it must have reason to believe those specific expenses are tied to specific future sales. Then, as those sales occur, those advertising expenses are... Read more
What is a Variable Cost Per Unit?Normal Costing vs. Actual CostingManagers can use these formulas to calculate the total production costs. For instance, managers first need to find out how many hours it took the company to produce the product and how... Read more
Activity-Based ManagementIn traditional product costing system, costs are, first, traced not to activities but to an organisational unit, such as department or plant and then to products. ABC, as compared to traditional cost system is based on one fu... Read more
Financial StatementsDue to fair value treatment for “available for sale” securities, Unrealized gains or losses are included in the balance sheet on the asset side, however, such gains do not impact the net income of the Company. The Unrealized gains... Read more
Accumulated depreciationNet book value is the cost of an asset subtracted by its accumulated depreciation. For example, a company purchased a piece of printing equipment for $100,000 and the accumulated depreciation is $35,000, then the net book valu... Read more
Does accumulated depreciation affect net income?ACCOUNTINGFor the December income statement at the end of the second year, the monthly depreciation is $1,000, which appears in the depreciation expense line item. For the December balance sheet, $24,00... Read more
Net accumulated Loss is shown on the asset side in the balance sheet. Is it an asset?FINANCE YOUR BUSINESSIf you have retained earnings, you enter them in the "owners' equity" section of the balance sheet. Retained earnings represent all the business... Read more
How Annual Leave and Holiday Pay Work – Welcome to FlexiTime Support CentreYou Can Negotiate Paid Vacation DaysThe U.S. does guarantee unpaid leave for serious illnesses through the Family and Medical Leave Act (FMLA). This law requires employers wit... Read more
How to Adjust Journal Entry for Unpaid SalariesWhen accrued revenue is first recorded, the amount is recognized on theincome statementthrough a credit to revenue. An associated accrued revenue account on the company's balance sheet is debited by the... Read more
