Bookkeeping 101

Recall that prepaid expenses are considered an asset because they provide future economic benefits to the company. A prepaid rent asset account is debited for the same amount. As each month passes, one rent payment is credited from the prepaid rent a…

The company’s total costs are a combination of the fixed and variable costs. If the bicycle company produced 10 bikes, its total costs would be $1,000 fixed plus $2,000 variable equals $3,000, or $300 per unit….

Shareholders of preferred stock receive fixed, regular dividend payments for a specified period of time, unlike the variable dividend payments sometimes offered to common stockholders. Of course, it’s important to remember that fixed dividends depend…

The decision to pay the dividend is at the discretion of a company’s board of directors. In a liquidation, preferred stockholders have a greater claim to a company’s assets and earnings. This is true during the company’s good times when the company h…

Ultimately he believed that the problem of free will was a metaphysical issue and, therefore, could not be settled by science. Moreover, he did not accept incompatibilism as formulated below; he did not believe that the indeterminism of human actions…

This affected the balance sheet tally of many companies due to the nature of such healthcare cost benefits. Through studies conducted earlier, SFAS 106 has reduced the basic earnings of at least 74 companies by 92% in average. According to SFAS 158, …

May 21, 2019. Posting in accounting is when the balances in subledgers and the general journal are shifted into the general ledger. Posting only transfers the total balance in a subledger into the general ledger, not the individual transactions in th…

The balance of this account prior to closing appears on the statement of owner’s equity. The owner’s drawing account does not appear on the post-closing trial balance. A term often used for closing entries is “reconciling” the company’s accounts. Acc…

The $2,400 transaction was recorded in the accounting records on December 1, but the amount represents six months of coverage and expense. By December 31, one month of the insurance coverage and cost have been used up or expired….

But if your business has grown to that level, you may want to consider another POS option on our list. A POS Systemis the hardware and software used to record the financial transactions of a retail store….