Fixed overhead and sunk costs are examples of irrelevant costs that would not affect the decision to shut down a division of a company, or make a product instead of purchasing it from a supplier. Likewise, the wages of employees retained after the sale of a division, would be irrelevant to the decision to sell it. Likewise, the wages of …
Continue ReadingRevenues, expenses, and dividends are therefore referred to as temporary accounts because their balances are zeroed at the end of each accounting period. Balance sheet accounts, such as retained earnings, are permanent accounts because they have a continuing balance from one fiscal year to the next. The closing process transfers temporary account balances into a permanent account, namely retained earnings. …
Continue ReadingHowever, accountants commonly work in office settings, such as accounting firms, corporate offices, government agencies, or non-profit organizations. Within these environments, accountants typically have access to a range of resources and tools to perform their duties effectively. This module is intended for students majoring in accounting and those who http://passo.su/forums/index.php?showtopic=2263&mode=threaded have a keen interest in gaining an understanding of elementary …
Continue ReadingMissing quarterly deadlines, even by one day, can mean accruing penalties and interest. If you miss a payment deadline, your best bet is to send your payment as soon as you can. Estimated quarterly taxes are due—you guessed it—quarterly. This will help you avoid a surprise tax bill when you file your return. You can also avoid interest or a …
Continue ReadingIt involves recording transactions and storing financial documentation to manage the overall financial health of an organization. Most businesses use an electronic method for their bookkeeping, whether it’s a simple spreadsheet or more advanced, specialized software. Bookkeeping is the process of keeping track of a business’s financial transactions. These services include recording what money comes into and flows out of …
Continue ReadingOur partners cannot pay us to guarantee favorable reviews of their products or services. We believe everyone should be able to make financial decisions with confidence. Accurate expense tracking is pivotal for assessing profitability and identifying areas for cost optimization. QuickBooks Simple Start simplifies this task by providing a platform to categorize and record all business-related expenses. These expenses can be linked to specific categories, enabling …
Continue ReadingIt gives a creditor the right to seize the property as collateral for an unmet obligation, usually an unpaid debt. Quite to the contrary, we find them to be such informative methods that we urge the adoption of some aspects of nonprofit accounting in businesses. Before we present these arguments, it is necessary to explain the nature of accounting in …
Continue ReadingGross margins were reported at 15.5% of sales, with GAAP operating margins approaching 10% of sales. With 58 million shares trading at $900 per share in February, the company commanded a $52 billion valuation, including a modest $350 million net cash position. As earnings power trends at $20-$25 per share, the resulting 40 times earnings multiples seemed reasonable given the …
Continue ReadingAccurate financial protocols drive consistency in financial reporting and stakeholder trust. Advanced reporting features offer insights into the financial position and performance of a property. Accurate advanced reporting drives informed decision-making and business optimization. Failing to reconcile bank statements regularly can lead to cash discrepancies. Training sessions offer insights into bank reconciliation techniques. For real estate professionals, regular bank reconciliations …
Continue ReadingOn the other hand, several established names like General Electric, Bank of America, and Georgia Power issue preferred stock to finance projects. Cumulative preferred stock has the condition that any previously awarded dividends that have not yet been paid must be distributed before any common shareholder receives any dividend distribution. This is in contrast to noncumulative preferred stock which does not …
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