16.12.2021 by Harry Vance
You've probably heard the term "liquidity" thrown around when it comes to your portfolio and assets. As such, liquid assets are those that can easily be sold or traded. The current ratio, also known as the working capital ratio, is calculated by divi... Read more
16.12.2021 by Harry Vance
Accordingly, regulators around the world attempt to seek conformity among national GAAPs and the IFRS. Perhaps most important, however, is the fact that the double-entry system of accounting is mandated by law. Double-entry bookkeeping is required un... Read more
15.12.2021 by Harry Vance
They’d have a ledger for every type of transaction, like a one for cash, accounts receivable, expenses, inventory, etc. Throughout the month, they would write down the debits and credits affecting certain accounts in their individual ledgers.In order... Read more
15.12.2021 by Harry Vance
If there are inaccuracies in a business’s financial records, the purpose of a trial balance is to reveal these inaccuracies, and the result should be an adjusted trial balance that’s free of any discrepancies. The purpose of a trial balance in accoun... Read more
10.12.2021 by Harry Vance
If you're a very small business or freelancer in North America, Wave might be the ideal accounting software to organize your business and simplify tax time. However, if you have higher revenue, more complex requirements or plan to scale, Xero is like... Read more
09.12.2021 by Harry Vance
Now, the market value of machinery is $20,000, but as per books, after applying depreciation, the value is showing as $ 30,000. The difference between the two values is that the organisation follows the cost principle for its assets and has not consi... Read more
09.12.2021 by Harry Vance
Based in Atlanta, Georgia, William Adkins has been writing professionally since 2008. He writes about small business, finance and economics issues for publishers like Chron Small Business and Bizfluent.com. Adkins holds master's degrees in history of... Read more
09.12.2021 by Harry Vance
It represents all the depreciation related to an asset or the overall assets a company owns. Usually, companies add to the accumulated depreciation account after every accounting period. The accumulated depreciation account plays a vital role in repr... Read more
08.12.2021 by Harry Vance
Unlike the allowance method, the direct write off method avoids contra asset account complications. Companies decide which accounts are uncollectible depending on various criteria.Instead, the allowance method of bad debts treatment is preferred. Whe... Read more
07.12.2021 by Harry Vance
A balance sheet is a financial statement that reports a company's assets, liabilities, and shareholder equity. In accounting, book value or carrying value is the value of an asset according to its balance sheet account balance. For assets, the value... Read more