These accounts have credit balance (when an asset has a credit balance, it’s like it has a ‘negative’ balance) meaning that they decrease the value of your assets as they increase. Straight-line depreciation is a simple method for calculating how muc... Read more
The value of the car here is said to be decreasing (i.e. depreciating) over time. Ken Boyd is a co-founder of AccountingEd.com and owns St. Louis Test Preparation (AccountingAccidentally.com). He provides blogs, videos, and speaking services on accou... Read more
The credit balances of revenue accounts will be credited to the Income Summary while the balances of expense account will be closed to the debit side of this account. As the result of these records, all revenue and expense accounts will have zero bal... Read more
It's no surprise that the main advantage of the multi-step format comes from the in-depth figures it provides. Users such as potential investors or creditors find the additional information on gross profit and operating income particularly helpful in... Read more
It’s fleshed out enough to successfully run a complex payroll , and it's very usable. Notable improvements include more focused online help, the Payroll Tax Center, and a new partner for 401 plans. The final column, labeled Compare to Last, opens a s... Read more
Income reconstruction for a marital divorce case where one spouse owns a cash based business. Business divorce where one party accuses the other of unfair dealings for self-enrichment or fraud. Forensic accountants engage cases relating to matrimonia... Read more
Using the % of change from the previous period to the current period gives us what the firm’s DFL was last year and not what the firm’s DFL is currently. If value is added from financial leveraging then the associated risk will not have a negative ef... Read more
The former represent the factual presentation of economic issues related to existing litigation. In this capacity, the forensic accounting Sustained by parties involved in the legal disputes and can assist in resolution dispute, even before they reac... Read more
If an outstanding check is cashed after you asked a bank to stop the payment, you will be responsible for proving that you took the necessary steps to complete the payment. Once such checks are finally deposited, they can cause accounting problems. F... Read more
In order to understand and use this formula, you will need specific information, including the discount rate offered to you by a purchasing company. Companies that purchase annuities use the present value formula — along with other variables — to cal... Read more
