The work of the accounting department of any company is not only limited to storing data about the company's property and finances. The accounting law requires documentation of each accounting transaction. To comply with the law and generate accounti... Read more
Net accumulated Loss is shown on the asset side in the balance sheet. Is it an asset?FINANCE YOUR BUSINESSIf you have retained earnings, you enter them in the "owners' equity" section of the balance sheet. Retained earnings represent all the business... Read more
How Annual Leave and Holiday Pay Work – Welcome to FlexiTime Support CentreYou Can Negotiate Paid Vacation DaysThe U.S. does guarantee unpaid leave for serious illnesses through the Family and Medical Leave Act (FMLA). This law requires employers wit... Read more
How to Adjust Journal Entry for Unpaid SalariesWhen accrued revenue is first recorded, the amount is recognized on theincome statementthrough a credit to revenue. An associated accrued revenue account on the company's balance sheet is debited by the... Read more
Accrued Interest DefinitionAccrued Expense vs. Accrued Interest: What's the Difference?The use of accruals allows a business to look beyond simple cash flow. In a cash-based accounting approach, a company records only the transactions where cash chan... Read more
Accrued cost — AccountingToolsAccrued expenses vs. accounts payableIs accrued expense an asset or liability?Accrual accounting is a method of tracking such accumulated payments, either as accrued expenses or accounts payable. Accrued expenses are tho... Read more
How to Accrue an Expense: 6 StepsFrom a tax standpoint, it is sometimes advantageous for a new business to use the cash method of accounting. That way, recording income can be put off until the next tax year, while expenses are counted right away.Acc... Read more
How Much is Average PTO in the U.S.?For an employee working 25 hours per week, two weeks of paid time off would require only 50 PTO hours. For most jobs, paid vacation days are standard across jobs and employee longevity.As the years of their employm... Read more
Accrual Accounting vs. Cash Basis Accounting: What's the Difference?Imagine you perform the following transactions in a month of business:If a business records its transactions under the cash basis of accounting, then it does not use accruals. Instea... Read more
GAAP: Generally Accepted Accounting PrinciplesWhen a company pays a vendor, it will reduce Accounts Payable with a debit amount. As a result, the normal credit balance in Accounts Payable is the amount of vendor invoices that have been recorded but h... Read more
