Identify all the expense categories that don’t change from month to month, such as rent, salaries, insurance premiums, depreciation charges, etc. Your total fixed cost is simply the result when you add up each individual fixed cost. Once you kn... Read more
The expense is then transferred to the profit and loss statement for the period during which the company uses up the accrual. Upon signing the one-year lease agreement for the warehouse, the company also purchases insurance for the warehouse. The com... Read more
Whether they claimed actual expenses, or got quarterly FAVR payment from their employer, they could deduct it on their tax return. In 2021, the standard IRS mileage rate is 56 cents per mile for business miles driven, 14 cents per mile for charity mi... Read more
Cash equivalents are also generally included with cash on a business’s financial statements. They are securities that can easily and quickly be converted into cash. For an investment to be considered a “cash equivalent,” it must mat... Read more
Each of these columns or sections is further broken down into categories. Insurance Expense is part of operating expenses in the income statement. Expired insurance premiums are reported as Insurance Expense. Accounting has many classifications for d... Read more
Overview of what is financial modeling, how & why to build a model. This lesson will concentrate on the acquisition of property, plant, and equipment. Accounts receivable is the balance of money due to a firm for goods or services delivered or used b... Read more
On the other hand, when a utility customer pays a bill or the utility corrects an overcharge, the customer's account is credited. This is because the customer's account is one of the utility's accounts receivable, which are Assets to the utility beca... Read more
Bear in mind that choosing an accountant can be a personal decision, so what's right for your best friend's PR business might not suit your manufacturing company. The best accountant for a sole trader might not be the best fit for a company with ten ... Read more
Check with your bank to see whether the refund has been received if you're waiting on a direct deposit, and the anticipated date has passed. Incorrectly entering your bank account number or routing information on your tax return could cause your refu... Read more
The terms and conditions set forth in an irrevocable letter of credit are fixed, and can only be changed with the express agreement of all parties involved. An irrevocable letter of credit is when an bank representing an importer agrees to pay the se... Read more
