Category: Bookkeeping

Notice how the accounting is the same for common and preferred stock. In the above journal entries, the debit side involves the bank account. However,…

As such, it will impact the company’s financial statement by showing a decrease in the assets equivalent to the amount that is withdrawn. It will…

As production or sales increase, so do variable costs, and as they decrease, so do variable costs. Examples of variable costs include direct labor, raw…

This means that the electricity cost has a fixed component of $800 per month regardless of the machine hours. Calculate the fixed cost by subtracting…

The first thing to note about accounting is that it is an art, not a science. It is a practical subject concerned more with doing…

For more information see Allowable Tax Benefits in the Instructions for Form W-7 PDF. Alien taxpayers who need an Individual Taxpayer Identification Number (ITIN) may…

Put another way, it is the amount that would remain if the company liquidated all of its assets and paid off all of its debts….

If you must send original documents, you can send the IRS a prepaid express envelope with your application to have them returned faster. You may…

Discounts often provide immediate price reductions, while rebates may take several weeks or months to process. By offering rebates, businesses can create a sense of…

The above data shows that compound entry saves time and energy, as more data can be presented concisely with better presentation. The only precaution is…