Accounting articles

What Is Encumbrance In Accounting?

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... Read more

Marginal Cost Formula

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 mar... Read more

Balance Sheet Vs Income Statement

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 shee... Read more

How To Depreciate Assets Using The Straight

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’... Read more

How To Start A Bookkeeping Business In 8 Steps

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 she got the hang of... Read more

Bookkeeping Vs Accounting

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 dif... Read more

Accounting For Exchange Of Plant Assets

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... Read more

Amortization Calculator

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... Read more

Dispositions Of Plant Assets

Most of the key manufacturers from different industries have shifted their manufacturing plants in APAC due to the low labor cost and availability of a skilled workforce. These manufacturing units are using asset management solutions for the improvem... Read more