Category: Bookkeeping

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. In regression analysis, the difference between the observed value of the dependent variable and the predicted value is called the residual. It is the anticipated value https://www.bookstime.com/articles/sole-trader-bookkeeping of the asset, considering… Continue reading Salvage Value Formula + Calculator

We can expand the equity component of the formula to include common stock and retained earnings. It’s called the Balance Sheet (BS) because assets must equal liabilities plus shareholders’ equity. A liability, in its simplest terms, is an amount of money owed to another person or organization. Said a different way, liabilities are creditors’ claims on… Continue reading What Is the Accounting Equation Formula?

As a result, reported profits under variable costing are not influenced by changes in inventory levels. This can provide a clearer picture of the profitability of a company’s operations, especially when inventory levels fluctuate significantly. Variable costing, on the other hand, includes all of the variable direct costs in the cost of goods sold (COGS)… Continue reading 6 5 Compare and Contrast Variable and Absorption Costing Principles of Accounting, Volume 2: Managerial Accounting