If your business makes money from rental property, there are a few factors you need to take into account before depreciating its value. If you want to record the first year of depreciation on the bouncy castle using the straight-line depreciation met... Read more
If you know the total amount consumed and the total percentage of the paid tax amount, you can conclude the percentage tax rate. For example, in many states where farming is the primary industry, the total price of products or equipment used to produ... Read more
(If the asset is still working, the company can keep using it, but it's done recording the expense.) Amortizable assets get reduced to zero. Depreciable assets get reduced to "salvage value," which is what the company could expect to get for the asse... Read more
For example, interest expense is part of other revenues and expenses, as are most gains or losses on early retirement of debt. An example of off-balance-sheet financing is an unconsolidated subsidiary. A parent company may not be required to consolid... Read more
A debit to a revenue account (111.11) is decreasing the revenue account's actual amount . Then, one day, the company accountant visited the office.The concept of debits and credits may seem foreign, but the average person uses the concept behind the... Read more
Learn more about what a balance sheet is, how it works, if you need one, and also see an example. A sample balance sheet for the fictitious Springfield Psychological Services at December 31, 2004 and 2003 is presented below, as an example.This incred... Read more
As the name implies, a single-step income statement uses a single calculation to determine a company's net income. The income statement is one of three key financial statements used by all companies, from small businesses to large corporations. A bas... Read more
Start by opening up a business checking account, followed by any savings accounts that will help you organize funds and plan for taxes. For instance, set up a savings account and squirrel away a percentage of each payment as your self-employed tax wi... Read more
An accrued expense is the expenses which is incurred by the company over one accounting period but not paid in the same accounting period. In the books of accounts it is recorded in a way that the expense account is debited and the accrued expense ac... Read more
In such cases, that rate of return should be selected as the discount rate for the NPV calculation. In this way, a direct comparison can be made between the profitability of the project and the desired rate of return. The rate used to discount future... Read more
