Bookkeeping - Page 53 of 146 - Online Accounting

Weighted average contribution margin

Oct 29, 2020 Bookkeeping by Adam Hill

To better understand contribution margin, consider that the net income of a company is its revenues minus expenses. The term revenues is synonymous with sales, and expenses include fixed costs and variable costs. Fixed costs are expenses that typical...

Earned Income Is Taxed Differently Than Unearned Income

Oct 29, 2020 Bookkeeping by Adam Hill

In addition, any pre-tax salary deferral contribution made to a retirement account, pension plan, or another pre-tax account will reduce your federal and state income tax liability in the contribution year. Unearned revenue is money received from a c...

Accounting adjustments

Oct 29, 2020 Bookkeeping by Adam Hill

Adjusting entries are generally made in relation to prepaid expenses, prepayments, accruals, estimates and inventory. Throughout the year, a business may spend funds or make assumptions that might not be accurate regarding the use of a good or servic...

What Is Financial Reporting in Small Business?

Oct 28, 2020 Bookkeeping by Adam Hill

The income statement is the primary financial statement for small business owners. The income statement lists all sales revenues, cost of goods sold and expenses for specific time period. Most income statements represent this information in a vertica...

Liabilities Meaning & Examples in Accounting

Oct 28, 2020 Bookkeeping by Adam Hill

Accountants must look past the form and focus on the substance of the transaction. Commercial paper is also a short-term debt instrument issued by a company. The debt is unsecured and is typically used to finance short-term or current liabilities suc...