Sometimes you just need a classic accounting reference book. Written by four accounting experts, the “Barron’s Accounting Handbook” does what Barron’s books do best—it covers everything that financial professionals need to know about financial reporting requirements and compliance. If you’re brand new to accounting or just need a refresher course, consider this the most comprehensive, reader-friendly guide. In the usual “Dummies” style, this book covers […]
An LLC may consist of a partnership of lawyers or doctors sharing a practice. Some big businesses like Anheuser-Busch also are LLCs. The process of establishing an LLC is relatively straightforward. LLCs have a distinct tax advantage for some businesses. Their taxes are “pass-through.” That is, the profits and the responsibility to pay taxes on them are passed to the owners rather than paid by the LLC. Both the limited liability company offer similar legal advantages and protections […]
Assets with no physical form, such as a business’ reputation, company know-how, industry knowledge and name recognition, are referred to as intangible assets. These assets are not listed on the balance sheet, nor are they considered liquid assets, but their intrinsic value adds to the credibility of the business, which can equate to a higher business valuation. Assets such as buildings, vehicles and office equipment, that are not consumed during the course of doing business, are tangible […]
Jensen also noted a negative correlation between exploration announcements and the market valuation of these firms—the opposite effect to research announcements in other industries. Net of all the above give free cash available to be reinvested in operations without having to take more debt. Here Capex Definition should not include additional investment on new equipment. We can see that Macy’s has a large amount of free cash flow, which can be used to pay dividends, expand operations, and […]
While an income statement can tell you whether a company made a profit, a cash flow statement can tell you whether the company generated cash. A balance sheet shows a snapshot of a company’s assets, liabilities and shareholders’ equity at the end of the reporting period. It does not show the flows into and out of the accounts during the period. A company’s balance sheet is set up like the basic accounting equation shown above. On the right side, they list their liabilities and […]
There are different types of businesses, but one thing they all have in common is that they must provide consumers with services, products, or both. Learn the definition and characteristics of a business, and explore some real-life examples of businesses. Job cost sheet is a document used in a job-order costing system to record all the costs incurred on a job. In addition to job identification details such as job number, customer name, etc., it includes particulars of direct material, direct (m […]
GDPR requires data controllers and processors based within the EU must appoint a DPO to assist in monitoring their internal compliance. The DPO is usually appointed from the organisation ’s staff and must have expert knowledge of data protection laws and practices. If an appropriate individual is not found within the organisation, they may hire a third-party contractor to act as a DPO. However, the DPO may not hold a conflict of interest and must be impartial in carrying out their role. I […]
As noted above, expenses are almost always debited, so we debit Wages Expense, increasing its account balance. Since your company did not yet pay its employees, the Cash account is not credited, instead, the credit is recorded in the liability account Wages Payable. Purchase discount is an offer from the supplier to the purchaser, to reduce the payment amount if the payment is made within a certain period of time. For example, a purchaser brought a $100 item, with a purchase discount term 3/10, […]
Outstanding shares are simply shares that have been bought by stockholders. So, common shares outstanding refers to the number of shares of common stock that have been purchased by stockholders. To figure out the number of common shares outstanding, we’ll usually have to do a little extra math, using the information in the stockholder’s equity section of the balance sheet. On the balance sheet, it will tell us how much money the company received for selling common shares, along with […]
Therefore, the cost driver for your business was products returned by customers. It is hard to determine the exact basis for the cost drivers to get the actual costs, which will defeat the ultimate goal of the business to find the actual cost of the product. These are an advantage for a product as they bring out the actual cost incurred on the products based on the correct allocation of the processes or activities. We are going to look at the following example in order to get a clear picture of […]
