Accounting Articles

Statement Of Account Definition

The former editor of Consumer Reports, she is an expert in credit and debt, retirement planning, home ownership, employment issues, and insurance. She is a graduate of Bryn Mawr College (A.B., history) and has an MFA in creative nonfiction from Benni... Read more

What Is The Last In, First Out Lifo Method?

Upon its enactment in March, the American Rescue Plan Act introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022. Following is the Tabular r... Read more

How To Calculate Profit Margin

To calculate your profit margin, you first need to calculate your net income and net sales. Once you’ve identified your net income and net sales, you can use the profit margin formula. In this guide, we’ll define what profit margin is,. Read more

The Founders Guide To Startup Accounting

While those aspects are key to your business’ success, so are your finances. AP is most often paid by invoice, which means an extra document for accountants to keep on top of. Each transaction includes the supplier invoice, a bank or. Read more

Liquidity In Small Business

High market liquidity means that there is a high supply and a high demand for an asset and that there will always be sellers and buyers for that asset. If someone wants to sell an asset yet there is no one. Read more

Job Costing For Construction

The production order takes the form of instructions issued to a foreman to proceed with the job. Thus, it serves as an authority to the foreman to indicate that the work should be started. Job costing is also known as job. Read more

Adjusting Entries Always Include

Real accounts include all accounts in the balance sheet. They are also called permanent accounts or balance sheet accounts. Once you have journalized all of your adjusting entries, the next step is posting the entries to your ledger. Posting adjustin... Read more

Accounting For Loans Receivable

The institution records $5,000,000 of loans receivable and an overall contra account of $1,586,790. Loan loss provisions are added to the loan loss reserves, a balance statement item showing total loan losses. To record a periodic loan payment, a bus... Read more