An example is an obligation to pay for goods or services received from a counterpart, while cash for them is to be paid out in a later accounting period when its amount is deducted from accrued expenses. Prepaid expenses are payments made in advance ... Read more
Opening a business bank account requires proof of identification for both you and your business. Examples include your state-issued driver’s license or passport, your business license or your partnership agreements.However, community banks get ... Read more
Form 1040EZ is generally used by single/married taxpayers with taxable income under $100,000, no dependents, no itemized deductions, and certain types of income . Additional fees apply with Earned Income Credit and you file any other returns such as ... Read more
Helstrom attended Southern Illinois University at Carbondale and has her Bachelor of Science in accounting. Asymmetric information is, just as the term suggests, unequal, disproportionate, or lopsided information. It is typically used in reference to... Read more
In the direct write off method, a small business owner can debit the Bad Debts Expense account and credit Accounts Receivable. Allowance for credit losses is an estimation of the outstanding payments due to a company that it does not expect to recove... Read more
Both cost and freight and free on board are legal terms in international trade. You will see these terms as part of the International Chamber of Commerce 's collection of global commerce terms, known as Incoterms. If goods are sold F.O.B. destination... Read more
Possible contingent liabilities are as likely to occur as not and remote contingent liabilities are extremely unlikely to occur . In this adjusting entry, the change in the expense is not recorded in the period of the sale. As discussed earlier, no r... Read more
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For this example, the fictitious company, XYZ Inc., has $5,000 of capital at the beginning of the period. The owner, Jane Smith, added $1,000 of cash to paid-in capital contributions, and the business earned $2,000 from sales. The owner also withdrew... Read more
We’ve found the five best accounting system software packages available as alternative choices to Quicken. Whether you don’t want to pay for software or you’re looking for something a bit easier to use or manage, you’ll find t... Read more
