Category: <span>Bookkeeping</span>

In order to do so, businesses can analyze all the different stages of the manufacturing process. Work in process (WIP) are goods manufactured by a business which are only partially complete. At the end of an accounting period ending work in process is included as a current asset in the balance sheet under the heading...

Since the cost of the inventory i2 is $70 is higher than the NRV of $50, we get the net realizable value for inventory  on the balance sheet at  $50. US GAAP does not permit a write-up of write-downs reported in a prior year, unlike international reporting standards, even if the net realizable value for inventory has been recovered....

He is the sole author of all the materials on AccountingCoach.com. To learn more about the balance sheet, see our Balance Sheet Outline. For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. My Accounting Course  is a world-class educational...

The indirect method (as shown below) inserts a percent change into formulas in the model, instead of directly changing the value of an assumption. During the previous year’s holiday season, HOLIDAY CO sold 500 packs of Christmas decorations, resulting in total sales of $10,000. The Fourier amplitude sensitivity test (FAST) uses the Fourier series to...

A very small business like a sole proprietorship is more likely to prepare a single step income statement. Many small businesses and larger companies prepare multi-step income statements. By analyzing trends and comparing these measures over different periods, stakeholders can identify potential areas for improvement and make informed strategic decisions. Whether you opt for a...

By streamlining processes with a data-driven approach, businesses can bolster their gross margin in terms of reducing costs and improving productivity levels overall. The importance of gross margin in business cannot be overstated, as it is a vital indicator of financial performance and profitability. In this article, we’ll dive into the definition, examples, formula, and...

For more information on these and other travel expenses, refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses. The IRS advises keeping tax records for three years from the date you filed your return or two years from the date the tax was paid, whichever is later. However, if you underreported your income by...

Product costs are the expenses directly tied to the creation of goods or services within a business. These costs represent the financial resources invested in the production process. All components are added together and recorded as part of inventory. In other words, product costs are expenses that are initially “parked” in the balance sheet and...

QuickBooks Enterprise is Intuit’s answer for businesses who enjoy the ease of use and familiarity of QuickBooks Pro or QuickBooks Online but have simply outgrown the solutions. The Enterprise option is the most advanced version of QuickBooks on the market, with more industry-specific features for manufacturing/wholesale, construction, nonprofit, professional services, large business accounting or retail...

A Fixed Asset Useful Life Table serves as a valuable tool in this calculation, providing a structured framework to analyze and document the estimated useful life of each asset category. It involves a comprehensive assessment of historical data, expert opinions, and industry benchmarks to arrive at an informed estimate. Shorter fixed asset accounting recovery periods...