B)Record write-off expense on the debit side of the profit & loss account as it is an indirect expense for the company. When the value of an asset has declined, some portion of its carrying amount should be written off in the accounting records. A write off is needed whenever the fair value of an […]
For instance, if an organization made a sale to a customer on credit one year ago and that amount is still outstanding, there is a good chance that the money will never be collected. A doubtful debt is an account receivable that might become a bad debt at some point https://www.quick-bookkeeping.net/what-are-operating-activities-in-a-business/ in the future. A […]
Under absorption costing, the fixed manufacturing overhead costs are included in the cost of a product as an indirect cost. These costs are not directly traceable to a specific product but are incurred in the process of manufacturing the product. In addition to the fixed manufacturing overhead costs, absorption costing also includes the variable manufacturing […]
It might be helpful to consider the difference in cost and service between hiring in-house and outsourcing your accounting needs. Outsourcing is typically less costly and often preferred when a business matures to the point of first requiring a professional accountant. New businesses often don’t have the flexibility to absorb big bumps in their supply […]
Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets. In the example below, ExxonMobil has over $2 billion of net unrecognized income. Instead of reporting just $23.5 billion of net income, ExxonMobil reports nearly $26 billion of total income when considering other comprehensive income. Also, purchases […]
Also, keep in mind that different states have different sales tax rates – the above example assumes a 4% state sales tax rate. A tax rate of 30% is applicable to both income and gains and is not expected to change in 5 years. Tax code requires the company to depreciate the plant over 5 […]
They are dedicated to providing exceptional service to their clients and are always available to answer any questions you may have. ABOUT OUR IRVINE OFFICEOur Irvine office is located in the heart of Orange County by John Wayne Airport. Our accounting firm serves businesses that mirror the Orange County marketplace and includes the real estate, […]
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