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

Concerns have been expressed about potential economic impacts of the statement such as effects on energy supply development and on competition within the industry. Depreciation and amortization, on the other hand, apply to tangible and intangible assets, respectively. Depreciation involves the systematic allocation of the cost of physical assets, such as drilling rigs and production… Continue reading Comprehensive Guide to Oil and Gas Accounting Practices

Both parties don’t record the sale transaction in their general ledgers until the goods arrive at the buyer’s location. During transit, the seller retains the risk and responsibility for the goods. Additionally, if the goods are damaged in transit, the seller is responsible for replacing them at their own expense. Conversely, with FOB destination, the… Continue reading FOB Incoterms® meaning Free on Board shipping

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