financial literacy Presenting negative numbers using parentheses: where does this practice come from? Personal Finance & Money Stack Exchange

In comparisons of actual expenses to budgeted expenses, the amount overspent is often shown in parentheses. So the convention of using parentheses to separate the unary minus from other operations is a thinking tool as much as it is a communication tool. It is natural for students to find it difficult at first, because we […]

Paying and Deducting Commissions to Employees

The problem is that many services companies contract on behalf of a parent entity, so the revenue (and customer payments!) all go to the parent company. The local company is paying all of the expenses related to those employees, including the commissions. The Federal Accounting Standards Board (FASB) introduced a revenue recognition standard called ASC […]

What are the limitations of a balance sheet?

Moreover, the balance sheet aids in determining the value of a company’s net assets or shareholders’ equity. This is a vital consideration for shareholders and potential investors as it signifies the residual value that would be distributed among them in the event the company is liquidated. The balance sheet also plays a crucial role in […]

Adjusting Journal Entries in Accrual Accounting Types

Such revenues are recorded by making an adjusting entry at the end of accounting period. In summary, adjusting journal entries are most commonly accruals, deferrals, and estimates. Similar to the immediate recording of revenue earned, any expense incurred should also be immediately become a part of your company’s accounts book. This is particularly significant when accruing […]

3 2 Calculate a Break-Even Point in Units and Dollars Principles of Accounting, Volume 2: Managerial Accounting

What this tells us is that Hicks must sell 225 Blue Jay Model birdbaths in order to cover their fixed expenses. Once the break-even number of units is determined, the company then knows what sales target it needs to set in order to generate profit and reach the company’s financial goals. As you’ve learned, break-even can […]

Negative Shareholder Equity Causes of Negative Shareholder Equity

Cash dividends reduce shareholders’ equity on the balance sheet, reducing retained earnings and cash. Companies may issue excessively dividends large for several reasons, each with implications for the firm’s financial health and stability. The company’s negative shareholder can be a warning signal for the shareholder or investor because its net worth represents its financial health. […]

Jungle Scout: Amazon Seller Software & Product Research Tools for FBA and eCommerce Businesses

With these apps, you can expand your small business in new directions without having to purchase additional software. To help you find the best accounting solution, we’ve conducted research on a wide range of management software and put together a collection of our best accounting software. Plus, if you do engage the services of an […]

Bookkeeping for interior designers free 30 minute consultation

You can find the full webinar below, but here is a quick guide if you are short on time. For those who want a basic accounting software that still gets a lot done, Wave is an excellent choice due to its robust free single-user version. Wave supplies all of the critical features and offers a […]

What is Capital Budgeting and its Process of Calculation

First, sentiment isn’t as bad as the numbers suggest due to partisan skew. The process of measuring project performance against established criteria and taking corrective action as needed. The process of developing a project plan and executing it according to schedule. Balancing this all up helps to estimate if a project would ultimately increase the […]