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 […]

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 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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]