Typically, permanent accounts have no ending period unless you close or sell your business or reorganize your accounts. All income statement balances are eventually transferred to retained earnings. In accounting, a permanent account refers to a gene... Read more
It indicates that the company is in good financial health and is less likely to face financial hardships. Notice that the cash ratio is much smaller than the other two ratios. In analyzing the cash ratio, any ratio greater than 0.5 is considered good... Read more
A closed iron tank 12 m long 9 m wide and 4 m deep is to be made . Determine the cost of iron sheet used at the rate of rs 5 per meter , sheet being 2 m wide. A closed account is any account that has been closed out or otherwise terminated, either by... Read more
Take some expert advice on what receipts to keep for business taxes. Although many people keep paper records, it's also smart to have the documents converted to electronic files and stored in the cloud. Finally, remember that your state may have sepa... Read more
Assets are recorded in the journal at what they cost the business, or what the business paid to acquire them. The inventory turnover ratio indicates how many times inventory is sold and replenished during a specific period. It’s calculated as c... Read more
As a company’s assets grow, its liabilities and/or equity also tends to grow in order for its financial position to stay in balance. How assets are supported, or financed, by a corresponding growth in payables, debt liabilities, and equity reve... Read more
Third, the opposite holds true for liability, revenue, and equity accounts. The mnemonic for remembering this relationship is G.I.R.L.S. Accounts which cause an increase are Gains, Income, Revenues, Liabilities, and Stockholders' equity.... Read more
As the business owner applying for the EIN, you must have a valid taxpayer identification number, such as a Social Security number or individual taxpayer identification number. Check the list of questions above to see if your business qualifies for a... Read more
So, the ending balance of this period will be the beginning balance for next period. Finally, dividends are closed directly to retained earnings.... Read more
Bookkeeping offers much lower barriers to entry, and the competition you face in the job search is less fierce. There are critical differences in job growth and salaries between the two. Growth for accountants and auditors is expected to continue for... Read more
