For example, the statement may include line items for changes in the ending balance of accounts receivable, inventory, and accounts payable. The intent is to convert the entity’s net income derived under the accrual basis of accounting to cash ... Read more
It is an estimated expense that is scheduled rather than an explicit expense. In this lesson, we'll use a hypothetical road trip and some other real-life examples to show you how to use the Poisson distribution, a formula for calculating the probabil... Read more
If you need long-term work from the contractor, the DOL and the IRS will eventually wonder if you should have a regularly scheduled employee in that role. Freelance writers generally work as independent contractors, writing articles and then selling ... Read more
The main aim of real accounts is to determine the company’s financial standing in terms of what it owns vs. what it owes. This can happen if you've never had any relevant transactions or if you sell off all the assets in a particular account. I... Read more
Capital Stockmeans, with respect to any Person, any capital stock , shares, interests, participations or other ownership interests of such Person and any rights , warrants or options to purchase any thereof. Capital Stockmeans, for any entity, any an... Read more
Rely on our team of small business certified tax pros to get your taxes right and keep your business on track. Find out how Block Advisors can help with your small business taxes.She is a graduate of Washington University in St. Louis. This is where ... Read more
An expense is the cost of operations that a company incurs to generate revenue. Unlike assets and liabilities, expenses are related to revenue, and both are listed on a company's income statement. Current liabilities are often loosely defined as liab... Read more
We won’t be elaborating on market value calculation in this section since will be looking at market value calculation in the sections below. So, we’ll take a simple example to run you through exactly how the value of real estate is assess... Read more
The advantage here is that expenses are recognized, and net income is decreased, in the time period in which the benefit was realized instead of whenever they happened to be paid. A deferred expense is a cost that has already been incurred, but which... Read more
Qualified leave wages.Refundable tax credits are available for paid sick leave and paid family leave (“qualified leave wages”) required under the Families First Coronavirus Response Act (the “FFCRA”). Qualified leave wages are... Read more
