This results in an increase in inventory due to the new purchases and a reduction in cash due to the payment. Thus the following entries will be entered into respective T accounts, i.e. The difference of these accounts is then carried to the unadjust... Read more
Sometimes it is for buildings, warehouses, and offices occupied by the organization. Other times organizations rent different types of equipment – such as office or maintenance equipment – because they require more flexibility than the ownership of p... Read more
Where there are gaps, the software offers seamless integration with a number of apps to enhance functionality. If you have QuickBooks Desktop and would like to switch to the online version, Intuit makes it easy. So, once you make the switch you&rsquo... Read more
In addition to her work with Investopedia, she has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street.Paying mortgage points now in exchange for lower mortgage paym... Read more
The entries shown in Exhibit 5 would be modified as shown in Exhibit 7. Under the liability method, you initially enter unearned revenue in your books as a cash account debit and an unearned revenue account credit. The debit and credit are of the sam... Read more
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 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
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
Unspent money today could lose value in the future by an implied annual rate due to inflation or the rate of return if the money was invested. The calculation of discounted or present value is extremely important in many financial calculations. For e... Read more
One method is called partial year depreciation, where depreciation is calculated exactly at when assets start service. Simply select "Yes" as an input in order to use partial year depreciation when using the calculator. You will find the depreciation... Read more
