Bookkeeping 101

Like the Currency format, the Accounting format is used for monetary values. But, this format aligns the currency symbols and decimal points of numbers in a column. In addition, the Accounting format displays zeros as dashes and negative numbers in p…

Consequently, a lawyer may not be able to form a conclusion with respect to such matters. In such circumstances, the auditor ordinarily will conclude that the financial statements are affected by an uncertainty concerning the outcome of a future even…

Examples of accounts payable include accounting services, legal services, supplies, and utilities. Accounts payable are usually reported in a business’ balance sheet under short-term liabilities….

One of the big selling points for a fixed annuity is that it is actually an insurance contract, and as such, it is based upon guarantees made by the insurance company. A big part of an annuity is a guarantee that you will continue to receive an incom…

Certain accounting positions require on-the-job travel time while others require little or no travel. External auditors often travel frequently due to the number of clients they serve and the various geographical locations of those clients. Internal …

If the Income Summary has a debit balance, the amount is the company’s net loss. The Income Summary will be closed with a credit for that amount and a debit to Retained Earnings or the owner’s capital account….

When your account reaches the low balance threshold, you may see a yellow light while driving through the toll lanes. That night, we will process a payment equal to your replenishment amount….

In cash-basis accounting, cash earnings include checks, credit-card receipts, or any other form of revenue from customers. GAAP is a common set of accounting principles, standards, and procedures that public companies in the U.S. must follow when the…

The premium on common stock is the difference between the par value of a share of stock and the price at which a business sells the share to investors. Par value is the face value printed on a stock certificate; it is usually quite small, with $0.01 …