Bookkeeping

To achieve basic objectives and implement fundamental qualities, GAAP has four basic assumptions, four basic principles, and five basic constraints. The process of figuring out how much your inventory is worth is called inventory valuation. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. How to record the lease liability …

US GAAP: Generally Accepted Accounting Principles Position Paper Lire la suite »

Keeping track of your debts and making sure you’re paying them back on time isn’t just important for maintaining good relationships with your suppliers. Accounts payable are a liability account, representing money you owe your suppliers. Accounts receivable on the other hand are an asset account, representing money that your customers owe you. Accounts payable …

Accounts Payable AP Definition, How It Works & Example Lire la suite »

Some companies’ balance sheets list the common shares outstanding straight out. If that’s the case, congratulations, you don’t need to do any calculations. But usually you will need to pull several numbers from the balance sheet in order to calculate the total outstanding shares formula. The balance sheet is a financial statement issued by the …

Shares Outstanding vs Floating Stock: What’s the Difference? Lire la suite »

The nature of the baking business is to take customer deposits, which are liabilities, on the company’s balance sheet. Some analysts like to use a modified D/E ratio to calculate the figure using only long-term debt. It’s also important to note that interest rate trends over time affect borrowing decisions, as low rates make debt …

Debt-to-Equity D E Ratio Formula and How to Interpret It Lire la suite »

As the prepaid service or product is gradually delivered over time, it is recognized as revenue on the income statement. Unearned revenue is a financial term that represents payments received by a company for goods or services that have http://vposade.com/2012-05-03-06-07-59/165-2013-02-05-13-34-48 not yet been provided or delivered. This occurs when customers prepay for a product or service, …

What Is Unearned Revenue and How to Account for It Lire la suite »

The opposite of tangible assets, Intangible assets don’t have a physical existence and cannot be touched or felt. Intangible assets can either be definite or indefinite, depending on the kind of asset in question. In other words, you business must have the intent or the ability to generate, use, or sell the intangible asset. Furthermore, …

Fixed Assets Vs Intangible Assets with examples Lire la suite »

If you earn more than $147,000 for 2022, your FICA taxes are computed slightly differently. There is no employer match for the additional Medicare tax. Security Certification of the TurboTax Online application has been performed by C-Level Security. All features, services, support, prices, offers, terms and conditions are subject to change without notice. You are …

What does FICA mean? Tax rate and your paycheck, explained Lire la suite »

The example above complies with International Financial Reporting Standards (IFRS), which companies outside the United States follow. In this balance sheet, accounts are listed from least liquid to most liquid (or how quickly they can be converted into cash). While an asset is something a company owns, a liability is something it owes. Liabilities are …

What Is a Balance Sheet? Definition, Explanation and Format Examples Lire la suite »