The employer should keep a version of the loan agreement as a template. By pre-filling out fields that will often remain unchanged , the company can use the document repeatedly for any future loan agreements they enter. Discrimination issues – if an ... Read more
For example, Wells Fargo offers both commercial and standby letters of credit of up to $250,000 for small businesses with $2 million to $5 million in annual sales. A letter of credit definitely helps the financials of a deal go down smoothly, but the... Read more
Technically, the lessee only has an intangible right to use the asset during the lease term. However, there is no real effect of using amortization over depreciation in the case of leasehold improvements. Leasehold improvements are assets, and are a ... Read more
Students can learn the basic foundations of bookkeeping from concepts and tools used, tracking expenses, reading financial reports, and more. Setting up and maintain a chart of accounts in online bookkeeping software as per the double-entry system of... Read more
All small businesses need a record of their financial transactions. The accounting journal entry is the first step in the financial reporting process. It is the basis for all the other financial reports prepared by the business.... Read more
The involuntary conversion of an asset occurs when an asset must be disposed of due to unforeseen circumstances, such as theft, casualty, or condemnation. The forced disposal of the asset may result in cash proceeds from the filing and payment of an ... Read more
Due to the practical difficulties of using actual costing, many companies instead utilize a normal costing system to obtain a close approximation of the costs on a timelier basis, especially manufacturing overhead costs. Direct materials and direct l... Read more
Report your result as “Net sales” below the sales discounts line on your income statement. The amount of net sales is the actual revenue you earned after accounting for discounts. Using the previous example, assume you had $20,000 in gros... Read more
Salary is also affected by the number of people available to perform the specific job in the employer's employment locale. Company Performance BonusesOccasionally, some companies like to celebrate excess earnings and profits with their staff collecti... 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
