The income and retained earnings of the accounting equation is also an essential component in computing, understanding, and analyzing a firm’s income statement. This statement reflects profits and losses that are themselves determined by the calculations that make up the basic accounting equation. In other words, this equation allows businesses to determine revenue as well…
Treasury stock is not an asset, it’s a contra-stockholders’ equity account, that is to say it is deducted from stockholders’ equity. The par value of issued stock is an arbitrary value assigned to shares in order to fulfill state law. The par value is typically set very low (a penny per share, for example) and…
Outsourcing often allows businesses to reduce operational costs while maintaining or even enhancing service quality. Outsourcing is a strategic decision influenced by several key factors that can significantly benefit a business. Access to talent and capabilities is the foremost reason, with 32% of respondents highlighting its importance. By outsourcing, companies can leverage expert knowledge that…
You’ll also build a sound understanding of business strategy, operations, and accounting information systems. For accounting purposes, this debt only matters once the money leaves your account. It also includes tracking customer returns, a convenience that can both enhance customer loyalty and cause a bookkeeping headache. Improperly tracked, one return can throw off your sales, inventory, expenses,…
Cash accounting is a method of accounting that measures the transfer of cash. The two accounting methods are cash accounting and accrual accounting. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on…
If your bank or credit union requires one, a deposit slip is easy to fill out. It is a document that requires key personal and financial information such as your name, desposit slip account number, and deposit amount. Deposit slips can be valuable for tracking transactions and ensuring your money is directed to your bank…
Unlike the payback technique, ARR relates income to the initial investment rather than cash flows. This strategy is advantageous because it examines revenues, cost savings, and costs related to the investment. In certain situations, it can offer a full picture of the impact instead of relying just on cash flows generated. It is a useful…
Although there may be no formal agreement about what makes each ethnic identity unique, many people describe themselves as descendents of a particular ethnic group and wish to preserve this status and their rights. Categories based on ethnicity may or may not overlap with national identities. The idea of community is one of the most…
Answer a few questions about what matters to your business and we’ll recommend the right fit. If you have employees or contractors, try applying the hourly rate of the one whose time costs the most. Equivity is a good choice if you want an administrative assistant that goes beyond bookkeeping. Make sure you use the…
This information is provided as a courtesy and may be updated at any time. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor. California uses employee contributions to the state’s SDI fund (see above) to fund its Paid Family Leave (PFL) program. Supplementary…
