What Is A CFO Service? How To Know if You Need One

The a la carte approach allows companies to choose only the services they need, thus maximizing their accounting team’s value but avoiding overpayment. Some companies may need a CPA firm to help them with their taxes, while others may need financial leadership and long-term financial forecasting. Companies that don’t adopt the automation trend may encounter […]

What Is Financial Accounting? Definition, Principles, Statements

Instructor aids include an exam bank, lecture slides, and a comprehensive end-of-term case assignment. This requires students to prepare 18 different year-end adjusting entries and all four types of financial statements, and to calculate and analyze 16 different financial statement ratios. Unique versions can be created for any number of individual students or groups. The […]

Unearned revenue definition

Small business owners must determine how best to manage and report unearned revenue within their accounting journals. Media companies like magazine publishers often generate unearned revenue as a result of their business models. For example, the publisher needs the cash flow to produce content through its various teams, market the content compelling to reach its […]

Accounting for Gyms BIG Gym Accounting Guide

You understand fitness, but your knowledge of operating goals, break even numbers, and bookkeeping in general is preventing you from growth. Here are five tips as you start this bookkeeping journey as a fitness studio Gym Bookkeeping owner. A debit entry can increase the balance of some accounts, while a credit entry can increase the […]

Smart, Simple Accounting & Bookkeeping Software

The platform prioritizes simplicity, ensuring that even those with minimal accounting experience can maintain accurate and organized records. We reviewed multiple accounting software options using a detailed methodology to help you find the 9 best online bookkeeping services for small businesses. Our ratings considered everything from pricing and customer reviews to the number and quality […]

Contingent Liability How to Use and Record Contingent Liabilities

A contingent liability is not recognised in the statement of financial position. However, unless the possibility of an outflow of economic resources is remote, a contingent liability is disclosed in the notes. IAS 37 defines and specifies the accounting for and disclosure of provisions, contingent liabilities, and contingent assets. According to the full disclosure principle, […]

Order of liquidity definition

In addition, the company has $2,000 of short-term accounts payable obligations coming due. In this example, the company’s net working capital (current assets – current liabilities) is negative. This means the company has poor liquidity as its current assets do not have enough value to cover its short-term debt. The market for a stock is […]

What Is an Asset? Types & Examples in Business Accounting

It is also known as net assets since it is equivalent to the total assets of a company minus its liabilities or the debt it owes to non-shareholders. As noted above, you can find information about assets, liabilities, and shareholder equity on a company’s balance sheet. The assets should always equal the liabilities and shareholder […]

What is a contra expense account?

The allowance for doubtful accounts is not specifically reported, but the 10(K) reported that the allowance is immaterial to the amount. This make sense because Home Depot wouldn’t be carrying accounts receivable with long payment terms. Most accounts receivable would just be the time between purchase and credit card settlement. The net amount – i.e. […]

6 1: Introduction to Variable Costing Analysis Business LibreTexts

A thorough understanding of variable costs brings clarity to wealth management strategies. When investing in mutual funds or ETFs, the fund expense ratio is a key variable cost to consider. It encompasses management fees, administrative fees, and other operational costs. The contribution margin plays an important part in the CVP examination, enabling decision-makers to make […]