For the past 52 years, Harold Averkamp (CPA, MBA) hasworked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. Parts 2 – 6 illustrate transactions involving a sole...
Read moreWhat Are Liabilities in Accounting? With Examples
The AT&T example has a relatively high debt level under current liabilities. With smaller companies, other line items like accounts payable (AP) and various future liabilities like payroll, taxes will be higher current debt obligations...
Read moreTipping Doesn’t Work and It’s Why Restaurant Workers Won’t Come Back
Download our Payroll for Restaurants Guide for a detailed (but simple) list of everything you and your employees should know and do when it comes to recording tips, filing taxes and staying compliant. Note that some compliance how do restaurants...
Read moreUnearned Revenue: What It Is, How It Is Recorded and Reported
The concept of depreciation in accounting vastly differs from the concept of depreciation in economics. In accounting, we assume the value of cash to remain stable over time and ignore the effects of inflation on monetary assets. In accounting...
Read moreHow to Become QuickBooks Certified to Be an Accounting Whiz
This certification program does not guarantee you will have all the necessary knowledge or skills to perform a specific job or role. The Live 2-day class provides all the basics to work in QuickBooks effectively. The class also reviews most of...
Read moreLimited Liability Company LLC Internal Revenue Service
A business’ state income tax varies by state—and sometimes by city. Depending on where you do business and make money, you may have filing requirements in different jurisdictions. The rules and requirements are complex, and it’s best to consult...
Read moreRetained Earnings in Accounting and What They Can Tell You
Depending on how your company decides to manage its finances, you might create a combined statement of retained earnings and income or a separate statement with only the company’s retained earnings. Retained earnings are the money that remains at...
Read moreHow to Calculate a Nonprofit Operating Budget
The accompanying spreadsheet template may be used for a one-time analysis project or to implement ongoing program-based budgeting and financial management practices. While a calculation can be completed for a single program or activity, we highly...
Read moreSigns You Need to Hire a Bookkeeper and Why and Who Needs a Bookkeeper
It shows that you prioritize financial transparency and accountability, which can enhance your reputation and credibility in the business community. Implement a system for regular performance reviews to assess ongoing contributions. Address...
Read moreInventory Costing Methods & Inventory Valuation Methods
It is an accounting method in which assets purchased or acquired first are disposed of first. By consistently applying this formula over time, businesses can gain valuable insights into their purchasing patterns and adjust their procurement...
Read moreWhat is a Contra Revenue Account?
As your business acquires new assets (e.g., machinery, office equipment, vehicles), you record the initial purchase value in your Fixed Asset account. But these items don’t retain that initial value; if liquidated, they would likely be sold at a...
Read more3 6 Prepare a Trial Balance Principles of Accounting, Volume 1: Financial Accounting
For example, Celadon Group misreported revenues over the span of three years and elevated earnings during those years. This gross misreporting misled investors and led to the removal of Celadon Group from the New York Stock Exchange. Not only did...
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