One difference between an invoice and statement is that invoices go out with each shipment or service provided. That's not how it works with a billing statement, meaning a list of all outstanding invoices and the total yet unpaid. You send statements... Read more
A timesheet invoice may also be generated by Operated equipment rental companies where the invoice will be a combination of timesheet based charges and equipment rental charges. Invoices are the backbone of the accounting system for small businesses.... Read more
Use the envelope enclosed with your letter to send the information back to us. The letter explains the issues involved and outlines the types of information you need to send to us.... Read more
So a current ratio of 4 would mean that the company has 4 times more current assets than current liabilities. It indicates the financial health of a company and how it can maximize the liquidity of its current assets to settle debt and payables. The ... Read more
The interest earned on loans and advances are just like interest earned on normal investments and is reported in the statement of cash flows according to US-GAAP or IFRS as discussed above. Figure 12.1 "Examples of Cash Flows from Operating, Investin... Read more
Your inventory’s book value should be $38,000 ($50,000 – $12,000). However, due to shrinkage, your actual inventory value is $35,000. Use the inventory shrinkage rate to find out how much value you lost. Theft, both internal and external to the... Read more
If you set up a corporation or LLC for your business, you can deduct up to $5,000 more in organizational costs, such as state filing fees and legal fees. The cost of specialized magazines, journals, and books directly related to your business is tax ... Read more
If the allowance for bad debts account had a $300 credit balance instead of a $200 debit balance, a $4,700 adjusting entry would be needed to give the account a credit balance of $5,000. Aging schedule of accounts receivable is the detail of receivab... Read more
A simpler version of accounting is single entry accounting, which is essentially a cash basis system that is run from a check book. Under this approach, assets and liabilities are not formally tracked, which means that no balance sheet can be constru... Read more
Per that calculation, Seasonal Inspirations has inventory carrying costs of 24%. The capital cost is the cost that a business expands on carrying inventory. The cost is what a business will incur over a certain period of time, to hold and store its i... Read more
