Small business owners and self-employed individuals can use a Schedule C form to report profits or losses from a business. When you file your taxes, you can attach Schedule C to your regular 1040 form. If you recently became self-employed or started a bu
20 Different Sales Scenarios: What Does GAAP Require?Discusses elements entailed in generally accepted accounting principles (GAAP) in the United States. Different sales scenarios along with the action taken; Issues that should be approached with discretion; Quiz based on information in 'The Financial...
and cash flows. This information is presented in a clear and concise manner, allowing for easy comparison with other companies in the same industry or over time. Financial reporting also involves adhering to established accounting standards, such as Generally Accepted Accounting Principles (GAAP), to...
While the accounting equation is straightforward, its application can become complex in certain scenarios: Mixed Transactions:Some transactions affect multiple components of the equation, requiring careful analysis. Non-Cash Transactions:Events like depreciation or bad debt write-offs require adjustments that...
Leverage software: Accounting or financial management software may help you better generate financial reports, manage accounts receivable and accounts payable, and track cash flow – ultimately helping you better understand your current assets and liabilities. As your business gains traction, make sure to...
What does the term depreciation mean in accounting? What is the credit side if accumulated depreciation is a debit? What type of assets require adjusting entries to record depreciation? What is the adjusting entry to record $1200 of depreciation expense?
Eliminating upkeepLegacy software systems require a lot of maintenance from staff and consultants. These systems constantly need bug fixes, patches, upgrades, and maintenance fees. With cloud-based accounting software, the heavy lifting of tracking, diagnosing, installing, and testing fixes shifts from...
What does an unqualified audit opinion mean? An unqualified opinion means the auditor believes the financial statements present a true and fair view without any significant misstatements. How does technology impact accounting and auditing? Technology streamlines accounting processes and enhances auditing eff...
Accountants and certified public accountants are two different types of professionals. While all CPAs are accountants, not all accountants are CPAs. Accountants typically have a degree in accounting and don't necessarily require a license to practice their profession. They are usually responsible for...
What Is a Requisition? A requisition is a demand or request for a service or item, typically using a purchase requisition form or another standardized document. The requisition process is a standardized way of keeping track of and accounting for all requisitions made within a business. Key Takea...