Basic EPS uses net income divided by total outstanding shares, but the total outstanding shares number is different from the total potential outstanding shares. The earnings per share calculation is a valuation metric that allows investors to look at a…
Whatever happens, the transaction will always result in the accounting equation balancing. The inventory (asset) of the business will increase by the $2,500 cost of the inventory and a trade payable (liability) will be recorded to represent the amount now…
There are other aspects of construction accounting that make it unique from general accounting, as well. Each business needs to have a general ledger and records of accounts payable and receivable. General accounting requires people to use Generally Accepted…
Xero accounting software is a cloud-based system that helps small businesses manage their finances. This means it can be accessed from any internet-connected device. The software offers a variety of features, including invoicing, tracking expenses and creating financial reports. The…
C2FO has a best-in-class NPS of 72, determined by customer feedback. We are committed to being the best working capital option to our customers as we look for ways to better serve them every day. Use dynamic discounting to encourage…
Indirect costs are the sum of indirect labor, indirect materials, and miscellaneous inputs, so let’s look at how those are calculated. predetermined manufacturing overhead rate formula This method of calculating overhead helps businesses allocate manufacturing overhead more accurately, promoting better…
This credit needs to be offset with a $25,000 debit to make the balance zero. Closing entries offset all of the balances in your revenue and expense accounts. You offset the balances using something called “retained earnings.” Essentially, this is…
The discounts, promotional offers, current rates, and renewal pricing vary depending upon the type of Quickbooks plan you choose. To know about the latest QuickBooks Plans and pricing for a specific country, you need to visit the country-specific page at quickbooks.intuit.com…
Although it is theoretically possible that a company could have low-qualityearnings while simultaneously having high reporting quality, experiencing poor financialperformance can motivate the company’s management to misreport. Confidence in financial reporting cannot exist without confidence in the underlying accounting standards…
Backup withhold on any reportable payments made to the payee’s account, regardless of whether the payee makes any withdrawals, beginning no later than 7 business days after you receive the awaiting-TIN certificate. Backup withhold on any reportable payments if the…