Bookkeeping

Generally speaking, FIFO is preferable in times of rising prices, so that the costs recorded are low, and income is higher. Contrarily, LIFO is preferable in economic climates when tax rates are high because the costs assigned will be higher and income will be lower. That means the first 10 shirts you sold were those [...]

This could occur because the company was able to hire workers at a lower rate, because of negotiated union contracts, or because of a poor labor rate estimate used in creating the standard. For example, a manager might decide to make a manufacturing division’s results look profitable in the short term at the expense of [...]

The ending inventory under LIFO would, therefore, consist of the oldest costs incurred to purchase merchandise or materials inventory. If all items are purchased at the same price, there will be no problem in determining the cost of either the ending inventory or the items sold. For retailers, this means that acquisition costs include the [...]

It consists of a 2-week, self-led and instructor-led, online training with ongoing check-ins with managers. There will always be support available for you at any point, whether it’s before, during, or after training. This is a remote position where you will work virtually in a dedicated workspace where you can interact with customers on video [...]

The five-year amortization period might increase the after-tax cost of domestic R&D relative to the after-tax cost of R&D done in other countries. While this concern may be offset by the lengthier 15-year amortization period, the overall analysis may still yield a better ROI on offshore development. Expenditures for equipment and buildings used to perform [...]

The company uses a salesforce to help move these items quickly. For every product sold, ABC Co. pays its employee a $100 fixed-rate commission. During the last accounting period, the company sold 1,000 laptops. If more than one salesperson is involved in a sale, then the commission is split between them. It is also possible [...]

Even if you have experience with bookkeeping, there are some important nuances to ecommerce accounting you’ll want to follow. Here, you’ll learn about how to keep books for an ecommerce business, tools to help you, and common mistakes to avoid. Our full-charge bookkeeping stays on top of your day-to-day financials so you can stay focused [...]

In this section, we focus on 10 great visual examples of mantras. You can easily make your own mantra or own images of mantra by simply finding an image you love, creating a text overlay and printing it out to give you encouragement when needed. Feel free to save, these images wherever you desire, or [...]

Unlike capital expenditure, which is used for long-term investments, revenue expenditure includes expenses incurred to support the ongoing operations and sustain the business. The essential difference between revenue expenditures and capital expenditures is the time period over which the expenditure is expected to be consumed. Revenue expenditures are consumed over the short term, while capital [...]

In this case one balance sheet asset (cash), has been increased by 1,488 when the cash is banked. This usually happens when we make mathematical errors during the day of the sales. On the other hand, if the company has a cash shortage in the petty cash fund, it can make the journal entry with [...]