Business expenses must be correctly categorized for accounting and tax purposes. Assets that a company acquires during a fiscal year can either be treated as current or fixed, which affects how the asset is treated for tax purposes. An asset is considered current if it used up in the current...
usually in the form of monetary compensation, against the party responsible for the harm or injury. These compensations can be in the form of medical expenses (both current and expected), attorney fees, and other legal costs. The main motive of tort law...
What are the differences between accounts payable, notes payable, and accrued expenses? Include examples to illustrate each one. Answer in at least 150 words. Identify the differences between accrual accounting and cash basis accounting. What is the difference in accounts receivable...
Why you need it:If you’re making regular transactions, a checking account keeps your business transactions flowing smoothly. Plus, separating personal and business expenses helps avoid a headache come tax-time. If your business uses QuickBooks for its accounting processes, consider checking out our...
The infrastructure expenses are covered by the government to supply infrastructure to the public. These expenses are incurred to provide transportation systems, water systems, etc. The government invests huge capital in these facilities.Answer and Explanation: The accoun...
Fuel cards – you use this type of card to pay for fuel for your business vehicles and usually receive an invoice at the end of the month. You can give your employees a fuel card to use rather than relying on a company credit card or reimbursing employee expenses. ...
Management accounting leans more towards being a management information system (MIS) rather than any general-purpose financial statement. It is more concerned with strategic decision-making rather than mere reporting and recording. The foremost goal is to identify patterns of revenue and expenses and ...
Losses are other expenses that aren’t a part of normal operations, like taking a loss on equipment disposal. #3: Cash flow statement Cash flow statements provide a more detailed picture of the business’s cash inflow and outflow during a specified accounting period. Measuring the inflow of ...
In addition, compensation and benefits for production personnel and direct labor may be classified under operating expenses for accounting purposes. When considering the COGS, a company may consider the cost of direct materials, repairs of facilities and equipment, and property taxes on production facil...
Cost of sales or COGS are typically found in a company's income statement, a required financial document that summarizes the company's revenues, expenses, and profits over a specific period, usually a quarter or a year. Theincome statementstarts with the company's total revenue or sales...