Bookkeeping

Non-current assets include non-current investments and long-term receivables. A positive ratio indicates the company pays its short-term obligations after liquidating current assets. A negative ratio means current liabilities exceed current assets and indicates closing entries and post financial distress. Yes, a current ratio of 2 is typically considered a good level of liquidity. Accounting Crash […]

Another popular measurement is the Current Ratio, which evaluates whether a company has enough current assets to cover its short-term liabilities. Liquidity ratios help determine if a company has adequate liquidity to cover its current liabilities. Investors use banks and other business organizations to measure a firm’s ability to meet its short-term financial obligations. The

The amount of the accounts payable in this journal entry is the amount that the company recorded previously for the accrued utilities expense. When the company only receives the invoice of utility use at the beginning of the next period, it usually uses the amount in the last period utility invoice to record the utilities

It is based on the accounting equation that states that the sum of the total liabilities and the owner’s capital equals the total assets of the company. Of accounting, the total amount recorded as utilities expense reflects the cost of the actual usage of the utilities during the reporting period. Like electric and water companies,

In the last year, ignore the formula and take the amount of depreciation needed to have an ending Net Book adjusting entries Value equal to the Salvage Value. We break down the different state taxes your business may be required to pay, and how much they’ll cost you. To create a depreciation schedule, plot out

Efficient inventory management ensures that capital is not unnecessarily tied up in stock and helps predict the ordering of new stock and the clearance of outdated or slow-moving items. Dealerships should adhere to accounting standards such as Generally Accepted Accounting Principles (GAAP) to ensure uniformity, comparability, and transparency in financial reporting. Dealerships need to adhere

Attracting Investors and PartnersPotential investors or partners are more likely to work with a startup that has its financials in order. Accurate accounting builds trust and shows that you are serious about your business. Tax season is not the only time start-ups and small businesses can benefit from an accountant. Unemployment Taxes Pankaj has over