What Is A Capital Asset?

Content Understanding Accumulated Depreciation Normal Debit And Credit Balances For The Accounts Liability Accounts Definition And Explanation Of Sales Tax And Sales Tax Payable Liability If the books are properly closed, that property will not be included on the balance sheet that is being prepared for the period on December 31st. The balance sheet is […]

Net Income

Content Gross Profit, Operating Profit And Net Income Taxes? Overtime? Want More Features? What Is A Profit And Loss Statement? Net Income For Businesses Who Has To Pay Self Subtract the cost of goods sold plus any overhead or other costs to produce the goods to find the gross profit. For example, if your total […]

Tools And Techniques Of Management Accounting

Although the funds transfer pricing process is primarily applicable to the loans and deposits of the various banking units, this proactive is applied to all assets and liabilities of the business segment. Management accounting provides financial information for the organization’s internal management, its employees, managers and executives, in order to inform decision-making and improve performance. […]

Key Components Of Retained Earnings

The corporation first declares that dividends will be paid, at which point a debit entry is made to the retained earnings account and a credit entry is made to the dividends payable account. When the dividend payment is actually made, a debit entry is made to dividends payable and a credit entry is made to […]

What Are Prepaid Expenses?

Content What Is A Prepaid Expense? Advance Payment Entry In Tally Erp 9 Journal Entries For Accounts Payable What Is A Prepaid Expense? After 12 months the expense for prepaid insurance is fully accounted and your current asset balance for prepayments is at zero. From the perspective of the buyer, a prepayment is recorded as […]

What Three Types Of Transactions Affect Retained Earnings?

For this reason, many investors view companies with negative shareholder equity as risky or unsafe investments. Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements include the balance sheet, income statement, and cash flow statement. Theamortizationof intangibles is the process of expensing the cost of […]

Accounting Method Definition

Content Types Of Bookkeeping System Experience Affects Junior Bookkeeper Salaries Bookkeeper Job Description Guide Paraphrases For Bookkeeping: What’S The Difference Between Bookkeeping And Accounting? Types Of Bookkeeping System Producing invoices, chasing payments, getting you ready for tax deadlines and processing payroll. These are just some of the things bookkeepers do for small businesses. If you […]

Types Of Assets

Content Accountingtools How The Debt Collection Agency Business Works Definition Of Contra Asset Account Contra Asset Account Examples The company credits the accounts receivable account on the balance sheet and debits the bad debt expense account on the income statement. Under this form of accounting, there online bookkeeping is no “Allowance for Doubtful Accounts” section […]

Where Accruals Appear On The Balance Sheet

Content Prepaid Cards Cash Or Accrual? Can I Use Cash Basis For Expenses & Accrual For Revenue In My Small Business? Tax Law Expands Cash Basis And Simplified Inventory To More Businesses For example, you receive materials from a supplier, and they invoice you. You benefit from the goods now, but you won’t pay for […]


If you’ve borrowed money to buy equipment, vehicles, furniture or other items for your business, this account tracks payments and due dates. As the business owner, if you don’t understand the different types of “accounts” your bookkeeper uses to organize your finances, measuring the success of your efforts will be futile. If they offer ‘Established […]