Category Archives: Bookkeeping

How to Become a QuickBooks ProAdvisor: Elevate Your Skills With QuickBooks Desktop and Online

But this is still not problematic as you can do a quick check of their verified email address, and phone number available on the site. One of the key benefits of getting into a QuickBooks ProAdvisor program is that you are always prepared for real-world situations. After you are finished with your exam, save your […]

How to Journalize Paying a Bill in Accounting

However, if any costs are incurred as a refundable deposit, it will qualify as an asset. The point that needs attention here is the classification of such deposits. If the refund period is less than 12 months, then it can be part of the current asset; otherwise, it’s a non-current asset. Discover the meaning paid […]

Average Payment Period: Definition, Formula, and Example

In summary, the average double entry definition serves as an indicator of how efficiently a company leverages its credit advantages to meet its short-term supply needs. If a company’s average payment period is shorter than that of its competitors, it signifies that the company has a higher capacity to repay debts compared to others. The […]

Understanding Common Stock: Share Basics, Balance Sheet Impact, and Investor Insights

Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Please do your own research before investing, including reading the companies’ public filings, press […]

FIFO Inventory Management Fundamentals & Best Practices

For FIFO to truly work, it needs to be consistently enforced, and some form of automation and management system will be needed to make that possible. Note that it helps you in detecting the cause of the defects, but it does NOT help in detecting the defects earlier. This depends solely on how much work […]

What is the difference between prevention costs and appraisal cost

While prevention costs focus on preventing defects and errors from occurring in the first place, appraisal costs focus on detecting and correcting defects after they occur. Prevention costs play a critical role in ensuring product or service quality and enhancing overall business performance. By investing in proactive measures to prevent defects, errors, or failures, companies […]

The Difference Between Stock Splits & Stock Dividends

Generally, a company gives two kinds of dividends to its shareholders – cash dividends and stock dividends. A cash dividend is one in which the company distributes a definite amount of money to each shareholder for each share owned. On the other hand, a stock dividend is obtained from distributable equity in the form of […]

Straight Line Depreciation Method Explanation & Examples

If we estimate the salvage value at $3,000, this is a total depreciable cost of $10,000. Suppose an asset for a business cost $11,000, will have a life of 5 years and a salvage value of $1,000. The company takes 50,000 as the depreciation expense every year for the next 5 years. The straight-line method […]

How to prepare a statement of retained earnings for your business

Shareholders, analysts and potential investors use the statement to assess a company’s profitability and dividend payout potential. Retained earnings refer to the money your company keeps for itself after paying out dividends to shareholders. The statement of retained earnings is also called a statement of shareholders’ equity or a statement of owner’s equity. For information […]