We would get most of the information from the balance sheet, but it may be necessary to use the Statement of Retained Earnings as well for any information on dividends. As with investing, if there has been a change in a long term liability or equity ... Read more
LIFO has a higher inventory balance and a higher net income than FIFO. LIFO has a higher inventory balance and a lower net income than FIFO. Absent impairment, not be written off because it has an indefinite life. Written off as soon as possible as a... Read more
The second portion of your self-employment tax goes to Medicare. Unlike with Social Security, the Medicare tax applies to all of your net earnings regardless of how much you earn.... Read more
Thus, at the time of buying the bond, the buyer has to pay the seller the bond’s market price plus the portion of the next interest payment that legally belongs to the seller. In this example, an interest amount representing two of the six mont... Read more
The second job that an auditor has is to attest to the truth and accuracy of information on the financial statements in both the notes to the financial statements and in audit reports. The financial statement numbers don't provide all of the disclosu... Read more
The raw material will be used to make items that will be sold to the public. When the items that used the raw materials are sold, then the costs related to the raw material are recognized. For an expense to be recognized under the matching principle,... Read more
The components of equity include contributed capital, retained earnings, and revenue minus dividends. Similarly, it’s also common to see a debit account increase and then a credit account increase with it. You will never see a debit account inc... Read more
The purpose of MD&A is to provide investors with information that the company’s management believes to be necessary to an understanding of its financial condition, changes in financial condition and results of operations. It is intended to help... Read more
You’ll need to keep records such as mileage incurred, maintenance costs and the purpose of each trip. Make sure this is separate from your personal checking account and only use it for business expenses. And you may be eligible for business cre... Read more
These elements are booked depreciation , differed income tax , and recovery of common equity allowance for funds used during plant's construction . Therefore, even if personal tax costs are large enough at the margin to equal marginal benefits, there... Read more
