This deferred payment of taxes and corresponding deferment of tax benefits can have either a positive or negative effect on your working capital. Therefore, contractors should carefully consider the tax implications before deciding to use the complet... Read more
This method of depreciation allows a larger tax deduction in the early years of an asset and less in later years. If you’re wondering what can be depreciated, you can depreciate most types of tangible property such as buildings, equipment vehic... Read more
This does not mean management ignores differences in sales level, or customers eating in a restaurant, because those differences and the management actions that caused them need to be evaluated, too. With a flexible budget, budgeted dollar values (i.... Read more
Despite the use of a minus sign, debits and credits do not correspond directly to positive and negative numbers. When the total of debits in an account exceeds the total of credits, the account is said to have a net debit balance equal to the differe... Read more
If you are using the bill-to/sold-to feature and the invoice was created using a bill-to customer, select the sold-to customer number for the debit or credit memo. You can execute this process whenever you want to automatically create a debit memo fo... Read more
For example, Meals Expense might be a standalone account or it might be spread across the categories the meals relate to, such as Marketing, Conferences, or Travel. Gross margin is the profit after subtracting direct costs from sales. Everyone agrees... Read more
For a company to be profitable and provide healthy dividends to shareholders, the return on investment from loans must be higher than any interest owed on those loans. Issuance recovered somewhat in the first quarter of 2021, though the recovery was... Read more
It has debit and credit columns to record the balances extracted from ledger accounts with a view to test the arithmetical accuracy of the books of accounts. While the definition of the document is relatively straightforward, you’re probably th... Read more
By placing both revenues and expenses in the same period, your business’s financial statements will contain measures of both your accomplishments and efforts. This transparency lets investors clearly assess your company’s performance.Debi... Read more
A comparison of present value with future value best illustrates the principle of the time value of money and the need for charging or paying additional risk-based interest rates. Simply put, the money today is worth more than the same money tomorrow... Read more
