Apple performs $3,500 of app development services for iPhone 13 users, receives $1,500 from customers, and bills the remaining balance on the account ($2,000). Shareholders’ equity comes from corporations dividing their ownership into stock shares. We use owner’s equity in a sole proprietorship, a business with only...
Read MoreApple performs $3,500 of app development services for iPhone 13 users, receives $1,500 from customers, and bills the remaining balance on the account ($2,000). Shareholders’ equity comes from corporations dividing their ownership into stock shares. We use owner’s equity in a sole proprietorship, a business with only...
Read MoreThe recommended design for a potency-based tax assumes that THC content is the best proxy for potency and therefore the best measure of externalities related to marijuana consumption, but this is an area that should be studied further. The number of taxation categories can be...
Read MoreIf you decide to lease equipment for your business rather than purchase it upfront, you enter into a lease agreement with the equipment owner or vendor. Similar to how a rental lease agreement works, the equipment owner drafts an agreement, laying out how long you’ll...
Read MoreIn general terms, all the non-current liabilities can be called long-term debts, especially to find financial ratios that are to be used for analyzing the financial health of a company. There are a variety of accounts within each of the three segments, along with documentation...
Read MoreDebt ratio, or debt to asset ratio, is a leverage ratio that measures a company’s or individual’s debt against its assets. It’s a useful ratio for investors to use because it helps them determine the default risk of a company. While the total debt to total...
Read MoreYou can do this by either totaling the last period’s closing balances or you can enter balances as of the 1st day of this period. Shaun Conrad is a Certified Public Accountant and CPA exam expert with a passion for teaching. After almost a decade...
Read MorePlus, when it’s time to file your income taxes, you’ll know your financials are 100% comprehensive and correct, ready to be handed off to your accountant. Financial statements only provide a snapshot of a company's financial situation at a specific point in time. They also...
Read Moresales journals record sales and some other particular metrics related to sales. Account receivables are mentioned when the client purchases a product or service on credit, and sales are mentioned when the client purchases a product or service and pays for it through cash. The...
Read MoreSay that a company has a pen-manufacturing machine that is capable of producing both ink pens and ball-point pens, and management must make a choice to produce only one of them. You can also consider various pricing methods to increase your contribution margin without losing...
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