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
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
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
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
There are several types of leverage ratios and formulas to help investors and company owners analyze where they stand financially. While broader market spillovers appeared limited, the episode highlights the potential for material distress at NBFIs t... Read more
What Is Sales Tax?In simple words, sales tax is a little extra the buyers pay when they purchase something in the store. If your item costs $1, the sales tax makes the price go higher up to $1.09 or $1.04 or something along these lines depending on w... Read more
You will also look into the Chart of Accounts and its use in an accounting system as well as study how the Income Statement provides information on the profits and losses of the company. Accounting is a profession whose core responsibility is to help... Read more
Liquid assets can easily convert to cash in a short timeframe. Prepaid expenses include advance payments for goods or services a company will use in the future.In cost accounting, money is cast as an economic factor in production, whereas in financia... Read more
After dividends and inflation are factored in, you would have seen about a 10% return, ignoring taxes and fees, since the Dow Jones Industrial Average has existed. (Remember, only adjust for inflation if you also adjust the final amount for inflation... Read more
The Internal Revenue Service also requires consistency for the purpose of filing small-business taxes. If you choose an accounting method and later want to change it, you must get IRS approval. Finally, having a basic understanding of accounting conc... Read more
