Business Accounting Blog

The person must hold a sufficiently senior position to be able to browbeat other employees into participating in this diversion of assets. Usually, the potential amount of funds diverted increases with the seniority of the job title of the individual committing the fraud. Our firm’s litigation services department provides professional services to participants in the legal process.

There are different features you should be able to spot on legal currency, like raised printing, microprinti […]

Like perfectly elastic demand, the concept of perfectly inelastic is also a theoretical concept and doesn’t find a practical application. However, the demand for necessity goods can be the closest example of perfectly inelastic demand. In a perfectly competitive market, it is assumed a firm would have a perfectly elastic demand. This is because if they increased the price, the consumers with perfect information would switch to other firms who offer the identical product. Elasticity of dem […]

Again, these guidelines vary widely by industry and company size, and can be impacted by a variety of other factors. Net margin is $100k of net income divided by $700k of revenue, which equals 14.3%. Buying on margin is the purchase of an asset by paying the margin and borrowing the balance from a bank or broker.

In other words, gross margin is the retailer’s or manufacturer’s profit before subtracting its selling, general (more…) […]

A computerized accounting system can take the headache out of keeping track of exchange rates and dealing in multiple currencies. Accounting is sometimes called the language of business, and businesses all around the world speak it. The skills you would learn in a software-based accounting course are useful all around the world. Most of the major software programs make using the program simple. The math is accurate and reliable, so a business owner (more…) […]

Exhibit 2 shows the price components for a typical sale by a manufacturer of linoleum flooring to a retailer. The starting point is the dealer list price from which an order-size discount and a “competitive discount” are subtracted to get to invoice price. For companies that monitor price performance, invoice price is the measure most commonly used. Companies use cost-volume-profit analysis (also called break-even analysis) to determine what affects changes in their selling prices, […]

This includes income from receipts or services, returns or allowances, and tax credits and refunds. You will next need to list your business expenses. These are deductible expenses that will be leveraged against your taxable income to lower your tax bill. Your net income is what you are left with, and what you will report on your 1040. These payments are not considered a salary or wages for tax purposes because the vendor doesn’t deduct taxes. That means no federal income taxes, Social Se […]

If paper records are accidentally created containing payment card data, that data will be destroyed with either a cross cut shredder or a confetti shredder. Since 1947, Smolin Lupin has dedicated itself to developing long-lasting client relationships. We provide professional financial and accounting services uniquely designed to meet the needs of each and every client.
Based on this information, external auditors can also speculate whether the company’s financial information is reliable.W […]

MPT is a standard financial and academic methodology for assessing the performance of a stock or a stock fund as compared to its benchmark index. To avoid any confusion, note that deviation risk measures, such as variance and standard deviation are sometimes called risk measures in different fields. Analyze portfolio risks—The most serious project risks are communicated to the Portfolio Governance Team at a portfolio governance meeting or portfolio review meeting. The Portfolio Governance Team […]

We are looking for the total gross earnings, or \(GE\), for the telemarketer over the biweekly pay period. Although this phrase has many interpretations in different industries, for some people this phrase means that they get paid based on the quantity of work that they do. For example, many workers in clothing manufacturing are paid a flat rate for each article of clothing they produce.
No new mathematics are required for this commission type. You must combine salary calculations, discussed ea […]

You typically have many cash receipts during the day for toy, books and candy. You keep track of your sales in your cash register every day and then manually post the day’s transactions at the end of the day. At the close of business today, you are ready to review your day’s business and make the appropriate entries in your accounting records. As these accounts are posted, the account number is entered into the post reference column. In the subsidiary ledger, the post reference is & […]