The resulting weighted unit contribution margins for all products are then added together. A company may express a break-even point in dollars of sales revenue or number of units produced or sold. No matter how a company expresses its break-even point, it is still the point of zero income or loss. To solve this problem, management must identify and separate costs into fixed and variable categories. A company breaks even for a given period when sales revenue and costs charged to that period are […]
Comparing your budget with your actuals is an important step to gauge the effectiveness of a budget. It’s unrealistic to expect that you will achieve every business goal and reach your estimates every month. In an annual cycle, there will be months where your business will be booming, and there may be a few months where sales are slow. Due to seasonal inconsistency and industry trends, you will have to spend cash effectively so that the business isn’t at risk of shutting down during […]
They submit the detailed report of the auditors so that their performance can be verified. Standards of Reporting1.The report shall state whether the financial statements are presented in accordance with generally accepted accounting principles . The auditor should be aware of and consider interpretive publications applicable to his or her audit. If the auditor does not apply the auditing guidance included in an applicable interpretive publication, the auditor should be prepared to explain how […]
Dummies helps everyone be more knowledgeable and confident in applying what they know. Where the amount paid doesn’t exactly match the total value, the amount left over is paid from the last invoice selected.
Enter the expense details such as the date, the category the expense falls under, and the expense amount. On the opening screen, you’ll see an icon labeled Snap Receipt. Click on it, and your phone’s camera will open (you’ll be asked for permission to use it). Docu […]
When the program was conceived, high-wage earners were exempt from paying into the fund and from receiving Social Security benefits. The Internal Revenue Service provides an Income Tax Withholding Assistant to help you determine how much tax you need to withhold and report as an employer. Depending on income, employers fall into different tax brackets. Ontario applies a health premium tax to all payrolls on a sliding scale up to $900 per year. For example, if you were a semiweekly depositor who […]
The amount to sell upfront is usually a function of your skittishness over the current value of your stock and whether you need the money to make a significant purchase in the near-term. It’s hard to take emotions out of your own personal financial decisions, so our research team conducted an analysis using historical data to illustrate the best scenarios. A great way to avoid worrying about when to sell is by automating the decision. A vendor note is a short-term loan made to a customer […]
The difference is the amortization that reduces the premium on the bonds payable account. It is also true for a discounted bond, however, in that instance, the effects are reversed. The redemption amount generally equals how much the original investor paid to acquire the bond. However, the redemption amount can be different than the acquisition cost.
In other words, the bond trading at a premium will offer less risk than the bond trading at a discount if rates rise any more, which can make up […]
The sum of all outstanding amounts owed to vendors is shown as the accounts payable balance on the company’s balance sheet. An accounts receivable subsidiary ledger shows the transaction and payment history of each customer to whom the business extends credit. A subsidiary ledger (sub-ledger) is a sub-account related to a GL account that traces the transactions corresponding to a specific company, purchase, property, etc.
When the amounts owed to suppliers and other third parties are not […]
Percentage-of-receivables method The percentage-of-receivables method estimates uncollectible accounts by determining the desired size of the Allowance for Uncollectible Accounts. Rankin would multiply the ending balance in Accounts Receivable by a rate based on its uncollectible accounts experience. In the percentage-of-receivables method, the company may use either an overall rate or a different rate for each age category of receivables. Another way to estimate the amount of uncollectible acc […]
In economic theory, a firm will continue to expand the production of a good until its marginal cost of production is equal to its marginal product . In a beverage company, water would be used as a direct material that goes into the bottle. But water could also be used as an indirect material to wash the bottles or equipment. It is necessary to keep these types of consumption separate for accounting purposes. It is an essential metric for understanding the productivity and profitability (more&he […]
