Category: Bookkeeping

Stockholders’ equity definition

Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. An author, teacher & investing expert with nearly […]

Accrued Expenses: Definition, Examples and Accounting Principles

When the company has incurred an expense that has not yet been paid, that amount is included in its accrued expense adjusting journal entry. The journal entry would include a debit to the appropriate expense account and a credit to the accrued expense account – a liability account. Accrued expense is considered a liability because […]

6 Basic Financial Ratios and What They Reveal

Determining the financial health of your business depends on several aspects. One of them is ratio analysis which draws a clear comparison of line items in the financial statements of a business. Investors use average inventory since a company’s inventory can increase or decrease throughout the year as demand ebbs and flows. Another important lever […]

eBay Bookkeeping Guide 2023 Update Seller Essentials

The IRS treats these two types of stores differently, and both are distinct from actual businesses. This exclusive offer for eBay sellers is only available for a limited time. The average basic accounting plan costs between $10 and $15, though you can find higher and lower prices depending on the brand. With plans starting at […]

What Is Accumulated Depreciation and How Is It Recorded?

The estimate for units to be produced over the asset’s lifespan is 100,000. For example, if a company purchased a piece of printing equipment for $100,000 and the accumulated depreciation is $35,000, then the net book value of the printing equipment is $65,000. By deducting the accumulated depreciation from the initial cost of assets, businesses […]

In Accounting, Why Do We Debit Expenses and Credit Revenues?

The collection of all these books was called the general ledger. The chart of accounts is the table of contents of the general ledger. Totaling of all debits and credits in the general ledger at the end of a financial period is known as trial balance. On the other hand, when a utility customer pays […]