Assets and liabilities valued at current costs use the current exchange rate and those that use historical exchange rates are valued at historical costs. If a company’s functional currency is the U.S. dollars, then any balances denominated in the loc... Read more
The best practice is to document internal controls so that there can be a complete risk assessment. The issues of internal controls and risk were discussed during the recent AICPA Nor-For-Profit industry conference in National Harbor, Md. The session... Read more
When determining a fee structure, many accountants call other firms and ask for quotes. They use the average of those quotes to determine a fair and competitive price for their services.Send press releases to your local newspapers, radio and TV stati... Read more
These often receive favorable tax treatment over short-term assets. A method of foreign currency translation that uses exchange rates based on the time assetsand liabilities are acquired or incurred, is required. The exchange rate used also depends o... Read more
In addition to her work with Investopedia, she has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street.In the discussion above, we looked at one investment over the... Read more
Each state and local jurisdiction has its own rules for establishing a business. You’ll want to make sure you check with your Secretary of State to find out what licenses you may need. Think about the types of clients you want to serve, the types of... Read more
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
