Fixed assets refers to the assets, whose benefit is enjoyed for more than one accounting period. Fixed assets can be tangible fixed assets or intangible fixed assets. As per matching concept, the portion of asset employed for creating revenue, needs ... Read more
The ratio is an indication of a firm’s market liquidity and ability to meet creditor’s demands. In many cases, a creditor would consider a high current ratio to be better than a low current ratio, because a high current ratio indicates. Read more
Standard Costs — To assist in monitoring productive efficiency and cost control, managerial accountants may develop standards. These standards represent benchmarks against which actual productive activity is compared. Importantly, standards can be de... Read more
However, there are situations when the accumulated depreciation account is debited or eliminated. For example, let’s say an asset has been used for 5 years and has an accumulated depreciation of $100,000 in total. A lot of people confusedepreci... Read more
If that is the case, simply substitute your per-unit numbers in the billable hours equation. All of this tracking should be relatively easy to do with proper accounting software. But exactly how you categorize overhead costs will differ from business... Read more
If a return with NOL carryovers has not yet been filed, go to theLOSSscreen and uncheck the boxProcess NOL carryforward using "taxable income without NOL carryforward" figure. Under a long-standing provision, IRC §172, a corporation can elect to waiv... Read more
You can calculate your available credit by subtracting your current account balance from your total credit limit and factoring in any outstanding charges that are not yet visible on your balance. There are situations when the bank account balance is ... Read more
This assumption of a causal relationship is increasingly less realistic as production processes become more complex. The predetermined overhead rate is set at the beginning of the year and is calculated as the estimated overhead costs for the year di... Read more
Since the payback period focuses on short term profitability, a valuable project may be overlooked if the payback period is the only consideration. This formula can only be used to calculate the soonest payback period; that is, the first period after... Read more
They also offer a personalized, big picture approach that goes beyond number-crunching. You could handle your accounting needs yourself, but unless you have prior experience and can put in the time, your focus is better spent elsewhere.... Read more
