The entire cost of a capital asset is not charged to any one year as an expense; rather the cost is spread over the useful life of the asset. Accumulated depreciation is a contra-asset account on a balance sheet; its natural balance is a credit that reduces the overall value of a company’s assets. Accumulated depreciation… Continue reading Depreciation Expense Formula + Calculation Tutorial
Category: Bookkeeping
Purchase Discounts, Returns and Allowances: All You Need To Know
By showing adjustments and reductions made to certain accounts, investors and analysts can better understand a company’s financial health and potential risks. By using contra accounts, companies can provide a more accurate representation of their financial position in their financial statements. When a company receives the goods it ordered, it will record it as a… Continue reading Purchase Discounts, Returns and Allowances: All You Need To Know
How do I get an Individual Taxpayer Identification Number ITIN?
If you qualify for our assistance, which is always free, we will do everything possible to help you. A current passport would meet all these requirements and is the only document you can submit on its own. ITIN holders must verify their identity through the video chat process and will need a valid email address, proof… Continue reading How do I get an Individual Taxpayer Identification Number ITIN?
Dividend Investing: How It Works and How to Get Started The Motley Fool
Those features make Exxon a great dividend stock for investors seeking the same characteristics. If the company has paid the dividend by year-end then there will be no dividend payable liability listed on the balance sheet. Based on information like this (and more) the sector that I have the most concern with at this time… Continue reading Dividend Investing: How It Works and How to Get Started The Motley Fool
Activity-Based Costing ABC: Method and Advantages Defined with Example
The calculations Musicality did in order to switch to ABC revealed that the Solo product was generating a loss for every unit sold. Musicality could also decide to continue selling Solo at a loss, because the other products are generating enough profit for the company to absorb the Solo product loss and still be profitable.… Continue reading Activity-Based Costing ABC: Method and Advantages Defined with Example