Accounting articles

Reporting Unearned Revenue

Since deferred revenues are not considered revenue until they are earned, they are not reported on the income statement. As the income is earned, the liability is decreased and recognized as income. In accounting, unearned revenue is also called defe... Read more

Present Value of an Annuity

Present value is the concept that states an amount of money today is worth more than that same amount in the future. In other words, money received in the future is not worth as much as an equal amount received today. In other words, present value sh... Read more

Multiple Step Vs Single Step Income Statement

A multi-step income statement includes much of the information found in a single-step format, but it makes use of multiple equations to determine the profit, or net income, of a business. Multi-step income statements break down operating expenses and... Read more

Sales Tax Rate Calculator

This is important to know for businesses that operate by distributing their products in bulk to other outlets. Check with the laws in your area to ensure you do not unnecessarily charge a sales tax. If your business consists of mostly selling product... Read more

Using Balance Sheets In Accounting

Your pension liability can be figured out by subtracting the total amount due to retirees from the money you plan on using to make the pension payments. When you acquire a capital lease for an asset, all the rights and ownership transfer to you. For... Read more