Bookkeeping Archive
If the volume of goods produced varies from month to month, the actual rate varies from month to month, even though the total cost is constant from month to month. The predetermined rate, on the other hand, is constant from month to month. That
Contract retainage is a sum of money, usually 5-10% of the value of a contract, that consumers can withhold from you until they are satisfied with your work on a project. Having robust retainage management becomes vital when managing multiple initiatives at one time.
Generally Accepted Accounting Principles (GAAP) refer to the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing accounting transactions, and in the preparation
A contra expense account is a general ledger expense account that will intentionally have a credit balance (instead of the debit balance that is typical for an expense account). In other words, this account’s credit balance is contrary to (or opposite of) the usual
A liability of a travel agency can be identified as a claim against the assets that it utilizes for revenue generation and profitability. These can also be understood as the future sacrifice of economic benefits that the business undertakes for asset generation or for
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This is one of the easiest ways to invest in income-generating assets with little money. The minimum account size for Webull, Robinhood, Acorns, and M1 are all $0 – $20. Likewise, investors can also sell a call option (act as an option writer) and
This method aligns revenue recognition with the actual work completed, providing a more accurate reflection of the project’s financial status. For instance, if a project is 60% complete, 60% of the total contract revenue can be recognized. This approach not only smooths out revenue
In finance, face value refers to the nominal or dollar value of a security stated by the issuer. This is also known as “par value” or “par,” typically about bonds. Face value differs from market value, which is the security price based on supply
Automation, improved data security, better client communication, AI, machine learning, and the evolving roles of professionals are all part of this transformation. While some worry that technology will replace accountants, it is more likely that these professionals will become even more valuable as advisors,