As the asset’s book value decreases, the depreciation expense also decreases. The underlying idea is that assets tend to lose their value more rapidly during their initial years of use, making it necessary to account https://www.bookstime.com/ for this reality in financial statements. Salvage value is the estimated resale value of an asset at the end […]
Shaun Conrad is a Certified Public Accountant and CPA exam expert with a passion for teaching. After almost a decade of experience in public accounting, he created MyAccountingCourse.com to help people learn accounting & finance, pass the CPA exam, and start their career. This account is used to record both increases and decreases to profits […]
Since $1.33/L is less than $1.50/L, we know that the 3 L bottle of juice is a better deal because it has a lower unit price, even though it has a higher price per bottle. ❗ For the last two modes, you must provide both the number of items and the weight or volume. The […]
It’s primarily used for long-term forecasting, financial planning, and external reporting. Companies use cash flow projections to support a variety of financial goals. Some of the most common ones include management of operational funds, debt repayment, and long-term growth planning. You must ensure inflows regularly exceed outflows to keep your business financially healthy—paying the bills […]
To assist with budgeting and tax preparation, carefully track all sources of income and every business expense so you have a clear picture of your financial health. Real estate agents often have both unpredictable income due to the commission payment structure and many tax-deductible expenses such as mileage and home offices. Streamlined, automated record-keeping can […]
Specific regulations and accounting standards dictate how the accounting equation should be applied. These guidelines ensure consistency, accuracy, and transparency in financial reporting. By following these rules, you can have full control over your company’s financial health assessment. Another criticism of the accounting equation is its focus on historical costs rather than current market values. […]
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However, once you are obligated to begin withholding the Medicare surtax, you continue to withhold it each pay period until the end of the calendar year. Note that non-cash taxable benefits are not subject to EI premiums. The only exception to this is board and lodging benefits when an employee also receives cash earnings in […]
Gusto makes this easy with a separate “People” tab where you can add team members, view a company org chart, and even fully manage hiring, onboarding, and background checks via the Gusto Recruiting integration. Gusto’s payroll software is extremely intuitive to navigate—even for people who don’t have experience with payroll software. Although Gusto doesn’t have […]
They generate revenue by collecting transactional fees along the way. Other companies provide an intermediary service usually for a fee. LO 4.3Prepare journal entries to record the following business transaction and related adjusting entry. LO 4.2Name two types of adjusting journal entries that are commonly made before preparing financial statements? The accrual accounting method becomes […]