Many states that charge sales tax also have a complementary “use” tax law. In these states, you have to pay use tax on any purchases made online or through a catalog where sales tax is not charged. The use tax rate is often the same as the sales tax rate, but the requirement to ...
Enter the other required details. Validate and post the journal. The TDS amount that's calculated on purchase invoices is posted to the payable account. The TDS amount that's calculated on sales invoices is posted to the receivable account that is defined for each TDS tax code...
Regulatory changes in an industry, as well as alteration of a pricing strategy within a business, causes these metrics to change. For example, selling services above market-par in the market results in a higher GPM. The puzzle is that clients can refuse to purchase the service if your price...
Calculating the ROI on financed transactions is more involved. For example, assume you bought the same $100,000 rental property as above, but instead of paying cash, you took out a mortgage. The downpayment needed for the mortgage was 20% of the purchase price, or $20,000 ($100,000...
Expenses Are Not Liabilities Expenses are continuing payments for services or things of no financial value. Buying a business cell phone is an expense, while liabilities are loans used to purchase tangible assets (items of financial value), like equipment. 2. Make a Balance Sheet...
If you decide to purchase a used vehicle, you might be able to save over buying a new one. Leasing vs. Buying a Car In your search for a vehicle, you might wonder whether it's better to enter into a financing or leasing agreement. An auto lease essentially allows you to rent a new...
The Extra Math Will Pay Off Later When you see the car of your dreams, you probably don’t think too much about the monthly cost. But you should. Doing the extra math to calculate your monthly auto loan payment can help ensure you can really afford the car of your dreams. ...
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The average price of all the goods in stock, regardless of purchase date, is used to value the goods sold. Taking theaverage product costover a time period has a smoothing effect that prevents COGS from being highly impacted by the extreme costs of one or more acquisitions or purchases. ...
The carrying value, or book value, of an asset on a balance sheet is the difference between its purchase price and the accumulated depreciation. Accumulated depreciation applies to assets that are capitalized. Capitalized assets are assets that provide value for more than one year. Matching ...