Bookkeeping 101

Normal spoilage is the standard amount of waste or scrap that is caused by production, and which is difficult to avoid. For example, stamping parts out of a sheet of metal will inevitably result in some of the metal being rendered unusable. Abnormal …

Since both are on the debit side, they will be added together to get a balance on $24,000 (as is seen in the balance column on the January 9 row). On January 12, there was a credit of $300 included in the Cash ledger account….

Because they are subject to scrutiny by investors, stock companies tend to focus more than mutuals on short-term results. Stock insurers are also likely to invest in higher-yielding (and riskier) assets than mutual companies. The main difference betw…

The source of the company’s assets are creditors/suppliers for $40,000 and the owners for $60,000. The creditors/suppliers have a claim against the company’s assets and the owner can claim what remains after the Accounts Payable have been paid. Noncu…

However, the relative move of preferred yields is usually less dramatic than that of bonds. Companies also use preferred stocks to transfer corporate ownership to another company. For one thing, companies get a tax write-off on the dividend income of…

There are many accounting software options that are great for managing everything from your sales invoices to maintaining income statements and balance sheets. This software allows you to keep and edit notes on specific clients, which is accessible t…

A board-only organization typically has a self-selected board and a membership whose powers are limited to those delegated to it by the board. The Model Nonprofit Corporation Act imposes many complexities and requirements on membership decision-makin…

Examples of monetary assets include cash, accounts receivable, notes receivable, and investments. Examples of monetary liabilities include accounts payable, notes payable, sales taxes payable, and various accrued expenses. Assets and liabilities that…

A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors. Adjusting the nominal return to compensate for factors such as inflation allows you t…

If you want to easily calculate your NOI, use our free NOI calculator. Cap rate, short for capitalization rate, is a return on investment metric. It is a calculation used to determine the profitability of a real estate investment. Simply put, the cap…