A double entry system is considered complex and is employed by accountants or CPAs (Certified Public Accountants). The information they enter needs to be recorded in an easy to understand […]
Straight Line Depreciation Method
It also explains how you can elect to take a section 179 deduction, instead of depreciation deductions, for certain property and the additional rules for listed property. The straight line […]
Capitalization: What It Means in Accounting and Finance
Capitalization meets with the requirements of the matching principle, where you recognize expenses at the same time you recognize the revenues that those expenses helped to generate. It is important […]
Petty Cash Log Template Printable Petty Cash Form
Usually, it is kept in a safe box with proper segregation of duties between the person who use, record, and keek the petty cash. It is normally used petty cash […]
Finding an Accountant Who Specializes in Small Business Accounting
Any lender you work with for small business financing will need detailed and organized financial documents. They’ll use this information to decide whether you’re eligible for a loan. Xero also […]
Accounting for acquired contract assets and contract liabilities
Deferred revenue is payment received from a customer before a product or service has been delivered. Understanding the basics of accounting is vital to any business’s success. Under the accrual basis […]
Per Annum Definition, Uses, and Sample Calculation
To understand how it does it, let’s take a look at the following example. Let’s cover some frequently asked questions about our compound interest calculator. As we compare the compound […]
The Loan Repayment Journal Entry
Likewise, the payment amount usually includes the interest on the unpaid balance and the reduction of the principal. In the journal entry, this will be the debit of expense and […]
What is a contingent liability?
This is because the happening or not happening of a contingent liability is not in the hand of us. Here, contingent liabilities are recognized only when the liability is reasonably […]
Capital Asset and Liability worksheet
The shareholders’ equity number is a company’s total assets minus its total liabilities. In accounting, a fixed asset is a type of capital asset that is tangible that a company intends […]