Category Archives: Bookkeeping

The diversity and experience of board members bring balance, ensuring terms end by 2027. The goal is to have FASB standards match international ones, reducing differences in financial reports. In capital markets, it is necessary for investors to receive information surrounding a company’s profits and losses. A recent change made by the FASB allows companies […]

GAAP is a set of standards that accountants must adhere to when they complete financial statements for publicly traded companies in the U.S. There are 671,855 certified public accountants in the U.S. as of August 2024, according to the National Association of State Boards of Accountancy. Schools must be institutionally accredited in order for learners […]

Accounting textbooks take three different approaches to teaching students how to analyze transactions. The purpose of showing three different methods is to first introduce the concept of how the Accounting Equation is impacted by transactions. Here is the Chart of Accounts we’ll be using for the example company as we analyze and enter our transactions. […]

Government accountants are responsible for budgeting, managing and tracking the government’s finances. They need to follow the standards set by the Governmental Accounting Standards Board (GASB). Cost accountants track the company’s spending across these three areas and create internal reports that break it down. The European Union has adopted IFRS, while some major capital markets, […]

Retained earnings are defined as a portion of a business’s profits that isn’t paid out to shareholders but is rather reserved to meet ongoing expenses of operation. Then, just pick the specific date and year you want the closing process to take place, and you’re done! In just a few clicks, the entire financial year […]

For example, ABC Co. started the company on 02 January 2020 by injecting cash into the business of $50,000. The $30,000 came from its owner and $20,000 came from the borrowing from the bank. Apple pays for rent ($600) and utilities ($200) expenses for a total of $800 in cash. Apple performs $3,500 of app […]

For a list of legal holidays, see Publication 15 (Circular E), Employer’s Tax Guide (Section 11, Depositing Taxes – Deposits Due on Business Days Only). Where you file Form 941 depends on your state and whether you make a deposit with your filing. The IRS encourages businesses to electronically file Form 941. Credits & Deductions […]

Here, we’ll take a closer look at how to increase profit margin, go over what typical profit margins look like by industry, and see how you can gauge how solid yours is. Let’s face it, any company’s most important goal is to make money and keep it. Because these characteristics determine a company’s ability to […]

For example, when paying rent for your firm’s office each month, you would enter a credit in your liability account. The double-entry system provides a more comprehensive understanding of your business transactions. Acme posts a debit to increase the machinery asset account (#3100), and posts a credit to increase accounts payable (#5000). Accrual accounting requires […]

By letting the borrower have access to the money, the lender has sacrificed the exchange value of this money, and is compensated for it in the form of interest. The initial amount of borrowed funds https://jugmedia.info/page/59/ (the present value) is less than the total amount of money paid to the lender. Our Present Value calculator […]