In short, the average collection period shows how fast the company can collect the money owed to them by the clients. Lower ACP means it doesn’t take long for the specific business to receive money from the sales done on credit, while higher AC…
Irs Enrolled Agent Salary
Posted on Posted on: 15.12.2021 Modified on: 11.01.2022Categories Bookkeeping 101Entry-level agents are primarily tax practitioners. During tax season, these agents review and prepare tax returns for both individuals and businesses. As their experience increases, these agents have the opportunity to move up the pay scale. Mid-lev…
How To Write Off Bad Debt
Posted on Posted on: 14.12.2021 Modified on: 11.01.2022Categories Bookkeeping 101Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after…
Public Accounting Vs Private Accounting
Posted on Posted on: 14.12.2021 Modified on: 11.01.2022Categories Bookkeeping 101Public accountants provide a range of services to protect the public interest – everything from auditing corporate financials to helping individuals plan their financial futures. We are committed to members’ success as they play a critical role in th…
Difference Between Assets & Plant Assets
Posted on Posted on: 13.12.2021 Modified on: 11.01.2022Categories Bookkeeping 101Accounting Accounting software helps manage payable and receivable accounts, general ledgers, payroll and other accounting activities. An estimated value of the costs of dismantling and removing the asset and restoring the site on which it is located…
2021 Sales Tax Rates
Posted on Posted on: 13.12.2021 Modified on: 11.01.2022Categories Bookkeeping 101The issue of fairness in taxation is often contentious and always subjective. The sales tax would tax consumption at a flat rate compared to the current system, which taxes income at progressive rates. Taxing consumption instead of income is often ju…
Days In Inventory Formula
Posted on Posted on: 13.12.2021 Modified on: 11.01.2022Categories Bookkeeping 101However, some businesses may choose to use 360 days per fiscal year or 90 days per quarter. In this formula, the ending inventory is the amount of inventory a company has in stock at the end of the year. Physically counting inventory at the end of a …
What is a Credit Risk?
Posted on Posted on: 13.12.2021 Modified on: 11.01.2022Categories Business Accounting Blog Leave a comment on What is a Credit Risk?The credit risk is, simply put, a risk associated with the borrower’s inability to pay back what they owe. Naturally, if that’s the case, the lending party won’t just lose whatever it is they are owed, but also the potential revenue…
Incremental Cost Definition
Posted on Posted on: 13.12.2021 Modified on: 03.03.2022Categories Bookkeeping 101The reason for the relatively small incremental cost per unit is due to the cost behavior of certain costs. For example, when the 2,000 additional units are manufactured most fixed costs will not change in total although a few fixed costs could incre…
210 Balance Sheet
Posted on Posted on: 10.12.2021 Modified on: 11.01.2022Categories Bookkeeping 101This simple equation does a lot in demonstrating that shareholders’ equity is the residual value of assets minus liabilities. Longer-term debt obligations have a full repayment period of more than a year. Long term liabilities are also mostly interes…