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
The total combined rate may not exceed 0.5%, so the statute provides mechanisms for credits and revenue sharing to make sure this limit is not exceeded. Submitting this form will add your email address to our mailing list. The combined tax rate is th... Read more
I was fortunate to get a job offer from a mid-size CPA firm in New England while I was a senior in college, and I spent many years working there as an auditor. Over 40 of the state boards now require applicants for CPA status to complete a special ex... Read more
If you are going to create the payment in the next batch of automatic payments, you enter the prepayment voucher and then follow the regular procedures for processing automatic payments. To make the payment using manual payments, you create the prepa... Read more
Using the same example above, suppose company ABC has a fixed cost of $10,000 per month to rent the machine it uses to produce mugs. If the company does not produce any mugs for the month, it would still need to pay $10,000 for the cost of renting th... Read more
Only "accredited" investors, those with a net worth of at least $1 million, can take part in private equity or venture capital partnerships. Such endeavors might require the use of form 4, depending on their scale. For investors who have don't meet t... Read more
Propensity Company had a noncash investing and financing activity, involving the purchase of land in exchange for a $20,000 note payable . The operating activities on the CFS include any sources and uses of cash from business activities. In other wor... Read more
